I don’t know anything about mortgages, but I feel like I’m finally ready to buy my very first house. I’m not sure where to start though, so I figured I would try to find the best mortgage rates possible, but… I have no idea how to do that.
I did some research online but it only confused me even more! Can someone please help me out and give me some advice?
TeresaParticipantTopics: 6 Replies: 72
Indeed it’s important to search for the best rate available, but I think it’s even more important to make sure you choose a mortgage that really meets your needs.
For example, there are open or closed mortgages, variable rates or fixed rates. If you don’t know the difference between these, you should make some research, because I think it will really help you make the best choice for your needs and your situation.
Thank you, it seems like I still have a lot to learn!
I did try to compare rates online but it confused me… I guess I’m easily confused these days! The decision to become a homeowner is a big one for me, I’m a bit stressed out and I want to do everything right.
Relax! Sure, buying your first house is a big decision, but it’s also the start of a great new adventure… Try not to be so stressed out! 🙂
Maybe getting in touch with a mortgage broker would make things more simple for you. Your mortgage broker would be able to explain you the different types of mortgages, and would help you choose what you need, and advise you.
If you want to get your hands on the best mortage rate possible, it really helps if you have a good credit score to begin with. If your credit score is less than ideal, you’ll have to pay higher interests.
If you think you need to raise your credit score, you can build a good credit history by taking small personal loans, and repaying them on time. That’s the most important thing: you need to pay all your bills on time, or else it could hurt your credit.
Oh, I hadn’t thought of that! I checked my credit score lately though, and it was good. Not perfect, but pretty good, so I guess everything’s fine on that side.
What else can help me get the best rates??
Do you have enough savings for a big down payment? The bigger your down payment is, the better your mortgage rate should be.
With a bigger down payment you will save money in the end, so if you feel like you don’t have enough savings right now, maybe it’s worth waiting a few more years before shopping for your house, if that’s possible for you.
It could also be a good idea to ask your family and friends who are currently homeowners who they got their mortgages from, and if they are satisfied. Unfortunately, some lenders are not that great to do business with, even if they might be offering good rates.
That’s interesting! I think I have enough savings for the type of house I want to buy, so I should be fine.
Thanks everyone for your advice! I still have a lot to learn but I’m feeling a bit less confused already.
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