Lucie's Mortgage Info Page

If you’re a first time homebuyer, it’s especially important to know what to expect when you try to purchase a home.

Knowing what to expect when you try to purchase a home, more so if you’re a first time home buyer makes the purchasing process easier to get through.  Understand, you have legal rights through The Fair Housing Act and the Equal Opportunity Act that make it illegal for lenders to base your qualification or disqualification for a loan on reasons based on your race, sex or national origin. There are several types of mortgages to consider, and it’s important that you do your research before settling on a home mortgage provider. Do not sign anything until you are comfortable with the terms of the loan. 

Home Mortgage Shopping

Shopping for a home mortgage is somewhat similar to shopping for a new car in that they are expensive products that one would rarely “take the first one you see” approach and you spend time “shopping around”.  That’s the fun part! When you get to the point of considering different mortgage providers, you’ll need to spend extra effort in finding a lending institution with reasonable rates and attractive terms. And again, avoid signing the first home mortgage approval you obtain.

Keep in mind, provided you apply at multiple lenders within a 30 day period, each instance that a home mortgage lender accesses your credit report to decide whether or not you qualify for their loan programs will only count as a single inquiry against your credit report.

Lenders of home mortgages include savings and loan associations, mortgage companies, commercial and mutual savings banks. The loans offered through each institution will have different features and different rates. Check with your friends/colleagues, people talk about their mortgages and refinancing all the time during coffee breaks and lunch, seek out references. Most people will refer you to someone they had a great experience with.  

Understanding Different Home Mortgage Options

There is no one-size-fits-all approach to obtaining a home mortgage. There are privately and federal insured mortgages, including guaranteed loans. Home mortgages that are not government insured are considered “conventional” mortgages, and may have higher down payment requirements than a government insured mortgage- but don’t offer as many limitations to the type of home or location of homes you can purchase using the money from the loan.

There are several options regarding the length of time you have to pay back the borrowed money as well as what percentage of the total purchase price must be available for a down payment. Larger down payments and longer terms provide a home - buyer with smaller monthly payments.

When considering the type of home mortgage you want to apply for, it’s important to decide whether you want a home mortgage with a fixed interest rate, or one that might change. There are combinations of fixed and variable rate mortgages, called convertible mortgages, as well. Any Online calculators or lending institutions, should be able to provide you with details of how each type of mortgage differs from one another, and how those differences will affect how much you pay each month, including your chances of qualifying for a particular home mortgage. This is part of the pre-qualification process.