Financing Your Home Purchase

Where Do I Start?

Buying a home is a major accomplishment, and it is typical for a first-time homebuyer to wonder if that goal is even reachable.  In fact, the whole process may feel overwhelming.  Many would-be buyers can be paralyzed in the confusion of not knowing what steps to take to even see if buying a home is something they are financially ready to do. 

If you are a first-time homebuyer, chances are that financing this purchase is most likely.  The first step to figuring out what purchase price you can afford is to calculate how much of a payment your monthly budget will allow. In figuring out that monthly amount, be thorough and realistic.  Think through what all of your monthly expenses are going to be compared to your net income.  Once you figure out what your monthly estimates are to get a general idea of what you feel like you can afford, the next step is to verify this information with the help of a mortgage broker.

A mortgage broker can be a valuable resource to steer you in the right direction on your homebuying journey. They will be able to look at the larger picture of what loan amount you can qualify for based on your monthly expenses and income (debt: income ratio).  They will also analyze your credit score to determine your chances of getting a bank to approve your financing and what your likely interest rate will be.  Knowing these things can be a little scary, but in the long run will help you to be sure you are shopping for homes in the correct price range.

An experienced mortgage broker will also be helpful in knowing what down-payment assistance programs available and which type of loan may be the best fit for your needs.  If you are purchasing a new construction home, find out if that builder has an affiliated mortgage broker.  They will often offer closing cost credits or other builder incentives to buyers that are financing through their mortgage broker.

The good news is that your mortgage broker should not charge you to apply for a mortgage.  Most loan fees are not collected until you are ready to close on your new home.  It is in the mortgage broker’s best interest to help you qualify for the best loan possible.  So, even if you aren’t immediately approved for a mortgage on your first try, a mortgage broker can help you take the next steps you need to ultimately reach that approval.  Abodefy partners with First Choice Lending to provide the best possible financing options for their buyers along with top quality customer service.  Happy shopping!