Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Find Your Local Branch
Back
Scroll to top

5 Mortgage Tips to Help You Get the Best Deal

Homebuying 2 min read

Ready to talk to an expert?

Find A Location Get In Touch

Applying for a home loan can be a confusing and sometimes frustrating experience for prospective home buyers, but it doesn’t have to be. By keeping these mortgage tips in mind, you can make the home-buying process easier and ensure you are getting a loan that meets your budget and needs.

5 Tips for Getting the Best Mortgage Loan

1. Check your credit. Finding out your credit score should be the first thing you do before considering your home buying options. Your credit score will impact the types of loans you are eligible for, how much money you can borrow and your interest rate.

2. Set a budget. Use a mortgage calculator to determine how much house you can afford and stick to it. You should also keep in mind how much you will have to pay in property taxes, homeowner’s insurance, maintenance costs, furnishings and utilities. According to LearnVest, you should take the top amount you are approved for take 20% off of it to make sure you can afford the extra expenses that go along with home ownership.

3. Understand your loan options. By learning about your loan options before you apply, you can make sure the lender you choose offers the best type of loan for you. Types of mortgage loans include the following:

  • Fixed-rate mortgages
  • Adjustable rate mortgages
  • Government loans
  • Construction loans
  • Professional loans

4. Shop around. When shopping for a mortgage, you don’t have to go with the first lender you talk to. You might get a better interest rate from one lender than you do for another. You’ll likely find that local community banks like First Bank will offer the most competitive rates and best service with all their lending options.

5. Prep your documents. Find out what documents you’ll need to apply for a mortgage and gather them before you meet with a lender. Required documents typically include:

  • Credit report
  • Tax returns
  • Pay stubs
  • Two forms of ID
  • Proof of current property owned

Visit First Bank’s Financial Education Center for more tips on buying a home, or talk to a First Bank mortgage loan expert near you to learn more about our home loan options.

 ———

Sources:

http://www.learnvest.com/knowledge-center/7-top-mortgage-shopping-mistakes-to-avoid/3/

http://www.realtor.com/advice/14-step-pre-approval-checklist/

http://www.consumerfinance.gov/askcfpb/137/how-do-i-find-the-best-loan-available-when-im-shopping-for-a-home-mortgage-loan.html

Ready to talk to an expert?

Find A Location Get In Touch
Share:
First Bank’s Good To Know Logo
Sign up for our newsletter and be the first to know about new tips, insights, and products from First Bank.
First Bank may use this email address to contact you about products, services, and promotions.

You may be interested in...

Where To Get 20 Year Mortgage Rates When you’re ready to buy a house, it’s easy to get caught up in all of the excitement of shopping and forget about the financial part. Once you’ve found the perfect house, the first thing you may be wondering is where to get 20-year mortgage rates. First Bank can help you determine what type of mortgage works best for you, and help structure a loan that meets your individual needs. What are 20-Year Mortgage Rates? 20-year mortgages are typically offered as fixed-rate mortgages, meaning your interest rate—and your total monthly payment of principal and interest—will stay the same for the entire term of the loan. A fixed-rate mortgage offers a predictable monthly payment, making it easier for you to follow your budget. With fixed-rate mortgages, you also have the option to take them out in 15 or 30-year terms. While a 20-year mortgage helps you pay off your home faster and build equity quicker than longer-term fixed-rate mortgages, a 15-year mortgage will help you pay it off even faster, and pay less interest. However, 15-year mortgages have higher payments than other longer-term mortgages. Additionally, 30-year fixed-rate mortgages allow you to pay off your loan with lower monthly payments, but since the life of the loan is longer, you’ll pay more interest and build equity slower than you would with a shorter-term loan. Visit Your Local First Bank First Bank offers conventional fixed-rate mortgages in 15, 20, and 30-year terms, and we also offer adjustable-rate mortgages. To learn more about our loan options, or if you’re still wondering where to get 20-year mortgage rates, visit your local First Bank branch. Our loan experts will be happy to teach you more about mortgage loans and rates, or help you structure a loan* that meets your needs. *Loans subject to credit approval. ——— Sources: Investopedia: http://www.investopedia.com/terms/f/fixed-rate_mortgage.asp 2 min read
Paper house in forground with hands on laptop in background A New Mortgage Loan Process is Here. Are You Ready? Michael Jablonski, EVP, Director of Mortgage Lending at First Bank, explains the Consumer Financial Protection Bureau’s “Know Before You Owe” regulation that launched in October 2015. 4 min read
Bank Owned Homes – Find Bank Owned Homes for Sale in Your Area If you’re in the market for a great deal on a home, a bank-owned home could be just the thing for you! With First Bank, you can easily search through a list of our bank-owned properties for sale. Bank-owned properties typically make great investments for first-time home buyers or for new business opportunities. Click here to see a list of First Bank’s available properties. About Bank Owned Homes (REO Properties) – Learn More Before You Buy A bank-owned home or real estate owned (REO) home is a home that has been foreclosed on be the mortgage lender. When you purchase a bank-owned property, you go directly through the bank, so you won’t have to deal with any homeowners. Once the mortgage lender or bank owns the property, they can evict the current residents, pay off any necessary tax liens, and make any necessary repairs. In today’s market, buying a home can be pretty expensive—especially when you add in extra costs and potential upgrades or home repairs—so if you are looking to purchase a home, but don’t have a lot of money to spend, a bank-owned home could be a good option. Bank-owned properties make great investments for first-time home buyers or anyone looking for new business opportunities. Advantages of Buying a Bank-Owned Home Bank-owned homes give real estate investors and homebuyers opportunities that are not available in the pre-foreclosure and auction phase of the foreclosure process. Some other advantages of buying bank-owned homes include: Bank-owned properties are typically cheaper than newer homes and often offer great terms like low down payments and low interest rates. Buying bank-owned homes can involve less risk and less competition than traditional markets. Bank-owned properties are typically clear of any liens against the property. The bank that owns the foreclosed property is usually the mortgage lender, so it might be easier to negotiate closing costs. Bank owned properties are typically vacant, which can save you from having to evict its current residents. For more information on bank owned homes, check out our article on how to shop for bank-owned properties. ——— Sources: Investopedia: http://www.investopedia.com/terms/f/foreclosure.asp Investopedia: http://www.investopedia.com/terms/t/taxlien.asp 2 min read
FHA Mortgage Loan Insurance If you’re in the market for a new home, it’s quite likely that you have thought about acquiring mortgage loan insurance through the Federal Housing Administration (FHA). Established in 1934, the FHA has helped millions of people insure their properties. Over the years, especially following the economic crisis of 2008, the FHA has implemented requirements for potential homebuyers. Loan Limits To remain eligible for FHA loan insurance, consumers must fall within the loan limits. These limits are not only divided by state but are also doled out per county. If you’re curious as to what your state’s FHA loan limits are, you can refer to the Federal Housing Administration’s website. Debt-to-Income Ratio This ratio was set to ensure homebuyers do not purchase a property that they cannot afford. By using these calculations, it can be determined whether or not a person has the potential to meet the demands of owning a home.  The ratio is looked at in two different ways: Mortgage payment expense to effective income = Total mortgage payment divided by gross monthly income. The maximum qualifying ratio is 31%. Total fixed payment to effective income = Total mortgage payment added to monthly revolving and installment debt, which is then divided by gross monthly income. The maximum qualifying ratio is 43%. Credit FHA requires that a borrower have good credit standing. In order to receive approval, a lender analyzes the borrower’s past credit performance. Loan approval will likely be declined should the credit history reveal slow payments, poor financial decisions, and delinquent accounts. Other issues are having no credit history, filing for Chapter 7 or Chapter 13 bankruptcy, making late payments, being subjected to foreclosure, and receiving collections, judgements, or federal debts. Apply for an FHA Loan with First Bank You have a friend at First Bank to better understand the loan requirements. We work with the Federal Housing Administration to offer FHA insurance mortgages. In order to quicken the process, you can apply online. Just be prepared with some financial information, such as income, assets, and expenses; you will also have to know the property’s information, like the estimated purchase price and down payment (if buying) or estimated property value and loan amount (if refinancing). ——— Sources: 2 min read