A Guide to Mortgages: What First-Time Homebuyers Should Know

2017-03-02 11:07:32

Ask any homeowner about the buying process and they will reveal that it was a daunting endeavour. Whether you are a first-time homebuyer or someone who has bought and sold a handful of properties, acquiring a home is always giving all parties a headache of some kind.

For first-time homebuyers, it can feel overwhelming and often intimidating, particularly when it comes to the financial end of the arrangement. Everything from applying for a mortgage to coming up with a down payment, the young novice homebuyer will likely want to give up.

One of the best ways to ease the strain of buying a home is tapping the services of a mortgage broker. These are professionals that connect you with a mortgage from a wide array of lenders based on your needs, profile and attributes. They are accredited, knowledgeable and free.

Since the average mortgage broker has spent several years in the industry, they have compiled a list of what they want every first-time homebuyer to know before they sign on the dotted line.

Here are five things every mortgage broker wants first-time homebuyers to know:

Do Your Homework & Probe the Broker

Buying a home is the biggest purchase you will ever make in your lifetime. Yes, even more than the entire boxset of "Seinfeld" or "The Simpsons."

Therefore, it is always important to do your homework about mortgages, homeownership, interest rates and so much more. Once you are equipped with this information, you must probe the broker with questions, comments, suggestions and so much more. Brokers will be pleased.

Ensure That You Get Your Questions Answered

Let's face it: you are not a real estate professional, and your knowledge may be limited. This means that if you have questions about anything throughout the process then you must ask the broker. Brokers will know something is wrong if they don't present any questions.

Remember, you have to get your questions answered, and if the reply is confusing then be sure to have those responses translated into simpler language. Don't be ashamed!

Always be Honest with the Mortgage Broker

When you are applying for a mortgage or you are filling in an application, you must adopt the policy of honesty. As the old adage goes: honesty is the best policy...in real estate.

If you are fibbing about your income, stretching the truth pertaining to your employment and fudging the numbers regarding your personal finances then your application will eventually be denied and you won't get the right mortgage that you can afford.

A mortgage broker is there to work with you and find the best mortgage for your needs. If you are a low-income individual then the broker's job is to get a mortgage that matches your personal financial situation. By telling the truth you will be able to receive a mortgage that suits you.

Refrain from Demanding Too Much

Some first-time homebuyers demand too much and have impossible expectations. A lot of first-time applicants will want a mortgage with a one percent fixed mortgage rate, while other applicants will think the mortgage process will be completed on the same day.

Suffice to say, a majority of mortgage brokers want homebuyers to have their demands minimized and their expectations not too high. This will prevent disappointment in the end.

Never Rush Through the Entire Process

As previously mentioned, some may believe that the mortgage application process should take no more than a day or two. But this isn't achievable as it will take some time to locate a lender, negotiate the terms of the mortgage and have the funds to purchase the property.

Rushing through the process will only hurt you, and brokers understand this well in advance.

Mortgage brokers are ultimately there to assist you in locating a mortgage lender and then finding the best mortgage possible.

With their years of experience, they become frustrated by certain borrowers who want the entire world in a short period of time while also lacking the basic knowledge of mortgages. They won't have the down payment, they will lie about their finances and they will demand that they get accepted for an $800,000 mortgage on a $30,000 salary.

Simply put: be calm, take your time, do your research, tell the truth and listen to the broker. If you follow these rudimentary suggestions then everything will go a lot smoother.