Are you thinking of buying a home? If so, then there are many things that you
need to research first. For example, do you know what a mortgage is and do you
know all the details of getting a mortgage? The more you know before you get
into it, the easier the whole process will be for you.
If you've never
owned a home before, you know that securing a mortgage loan can be more nerve
wracking than you might realize. After all, just like you would need to prove
your expertise to secure a job, you need to prove your credit worthiness to
secure a mortgage. The problem is, if you've never owned a home, how can you
possibly convince a lender that your credit is good enough to qualify you for a
home mortgage loan?
This means that first-time buyers often face higher
than standard interest rates and other unfavorable terms on their mortgages such
mortgagee insurance. Yet many, many first-time homebuyers or event people with
poor credit history enter the market each day, so there are lenders out there
that are willing to take the risk. There are lots of
mortgages designed
specifically for first-time borrowers, with terms and rates that are flexible
and not exorbitant. The trick is finding one of these lenders.
You could
simply start going from major lender to major lender to enquire about their
fixed low-rate mortgages, but a far more sensible strategy involves finding a
third party mortgage broker who represents a number of lenders under one roof.
Of course, just as there are literally hundreds of different mortgages to choose
from, so too are there hundreds of mortgage brokers. It is far better to use
the
services of a broker to help you ~cut to the chase~ and find the right
mortgage for you.
You should beware though - many mortgage brokers make their money by working
on a commission basis with the lenders themselves. There are, however,
independent brokers who are not in the business of servicing lenders, but
borrowers instead. It's their job to help new borrowers to find a good mortgage
with low rates.
Lastly when you find a broker who has good relations with
a number of lenders, it's easy to get a mortgage at special rates and it is also
easy to repay the loan at favorable interest rates. In addition, when it comes
time to refinance, you can generally use your relationship to lock in a much
more desirable interest rate through a broker than through your current
lender.
About the Author
Janine Monik is founder of All About Mortgages an excellent resource site
dedicated to information about mortgages. http://www.flynnmortgage.com
