When you are a first-time buyer, it seems like there are so many great opportunities out there. You may be inclined to get really enthusiastic about making the most important purchase of your life – the purchase of your very own home. The financial industry is very intricate and complex, with a large number of companies offering many different products and services. The first and most important thing to remember is that consultations are always absolutely free. You should be wary of companies and representatives who expect you to pay them for offering you advice. You would be better off finding information on the Internet, because this is not going to be the best advice you can get.
You are probably interested in how much you can borrow. This depends on the type of property you want to buy. You should decide on this and look into the market price of this property. No matter who you approach for a mortgage, they will ask if you have found a property. If you have not, you will be passed off just as someone who is looking around, and it is quite unlikely any lender will be interested in your situation.
Now that you have decided on a property and are familiar with its value and location, you have to find a lender. All financial institutions offering mortgages have special software that enables them to come up with an offer that is individually tailored to each separate client’s needs. The software can come up with thousands of products. If you are not sure about your property of choice, keep in mind that the representative of the lender you talk to will pick up on this and not make as great of an effort as they would if you sounded sure. So, when you talk to them, make sure you leave the impression that you are going ahead, you are dead set on the property, and you want to understand the expenses that this mortgage will involve before making a commitment.
Wachovia is one place you can shop for a mortgage. There are different types of mortgages you can check, featured with different interest rates. These are 30-year fixed mortgage with an interest rate of 4.5 percent, 15-year fixed mortgage with a 3.625 percent interest rate, 5-year ARM with a low interest rate of 2.75 percent, and more. First Bank is another financial establishment to offer various types of mortgages. The bank claims to offer competitive rates and low closing costs as to save clients money. To find out what mortgage rates you can get, you should fill out an online form stating the loan amount requested, the state you live in, your mortgage goals, and your personal details. You can expect a loan specialist to get in touch with you within one working day to discuss the details.
The next stage is referred to as the “approval in principle” stage. This means that you will get the mortgage based on the information you have provided to the lender, which has been verified and proven correct. At this point, you can start making offers on the property, all the while resting assured that you have been approved for the mortgage. The best professional to talk to at first is a broker, because brokers can supply the relevant market quotations. This means you will get a clear idea of the actual property’s value. You should get at least two estimates, preferably from two different brokers. If they are similar, you will know you are on the right track.
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