Mortgage - Home Mortgage

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First Home Mortgage

Buying your first home and applying for your first mortgage can be a very intimidating process. Today’s mortgage market is confusing and even frightening for first time buyers.

The best piece of advice for a first time homebuyer is to try and get somebody with some experience in the mortgage market to help you with your first mortgage. The best person to do this would be a friend or relative with some experience. If you don’t know anybody like that a realtor or mortgage broker might be able to help you.

One thing to keep mind is that realtors and mortgage brokers make their money by putting people in homes. This means those individuals only get paid if they put you in a home. That means they might put a person in a home and mortgage they can’t afford just to make their commission. That’s why it’s a good idea to try and get help or advice from someone who doesn’t have a financial stake in the decision.

Watch out for scams, etc. 

Unfortunately the mortgage and real estate businesses are full of dishonest and disreputable people who like to take advantage of novices. This means that every first time homebuyer should be on their toes when getting their first mortgage.

A good rule of thumb is to be cautious and trust your instincts. If your instincts tell you not to do business with a person or take their offer listen to them.

Another good piece of advice is to always get a second opinion. If they try to make you an offer or get you to sign something you don’t understand have somebody else look over it. This can be a friend, a relative, a lawyer, a credit counselor or anybody. Paying a lawyer to look over legal documents could cost you money now but it could save you a fortune in the long run.

Take your time

The biggest mistake that many people make when getting a first mortgage is moving too fast. Mortgage brokers and realtors will try to rush you because the sooner you sign the sooner they get paid.

A good suggestion is to slow down and take your time. Don’t make snap decisions and think carefully about every move you make.

In particular, take the time to read every document they give you outside of their presence before you sign it. If you don’t like something or don’t understand what a document says ask about it. Don’t be afraid to take documents to lawyers or others and get a second opinion about them.

When to walk away

One of the most important skills you’ll need to master if you don’t want to get ripped off on a mortgage is the art of walking away. Don’t be afraid to walk away and call a deal off if you’re not getting what you want.

If the mortgage interest is too high, or the terms are too strict come out and say so. Then tell the seller, the realtor and the mortgage company that you’ll walk away if you don’t get what you want. If they see you’re willing to walk away they will be much more willing to negotiate and change things to get your business.

Remember, in a mortgage deal, you are the customer; you have rights including the right to say no. Mortgage applicants who don’t exercise that right will get ripped off.