Too Many Homeowners Are Uncomfortable With Their Mortgage Five Practical Tips For First-Time Buyers

Figuring out your mortgage can be a real pain in the neck.

Did you know it remains one of homeowners’ biggest regrets involving their home? Understanding your payments and how they sync up with your budget and lifestyle is time-consuming, but well worth the effort. The best mortgage companies can help you get there. They can walk you through your credit score, ask you questions about your job, and inch you that much closer to a plan that works. There’s no one-size-fits-all when it comes to the little details of your life.

It doesn’t matter if you want to buy your first home or refinance your third. These are practical tips everyone can benefit from.

Homes Are Going Fast…Faster

Is it any surprise why the best mortgage companies are being sought out so often lately? So many Americans want to be homeowners today it’s practically a blur. A recent study found 30% of home buyers these past few years are doing so for the first time. That means a one-third chance of people diving into mortgage rates they don’t understand and setting themselves up for failure. Your first order of business when approaching your mortgage is to be honest about your budget and what you can pay off.

Housing Prices Are On The Rise

Not only are houses flying off the proverbial shelves…they’re also more expensive than ever. According to, properties are selling nearly 10% quicker than they were the same time last year. It’s also anticipated home prices will continue to rise between 2% and 5% over the next few years. The best mortgage companies are keen on providing you an option that makes sense for your budget, even as the clock’s ticking. How’s your credit score doing?

Double-Check That Credit Score

If you’re worried about this area, never fear. You can improve your credit score and get yourself to a place that feels more confident. By the time April of 2016 came around nearly 20% of Americans had a score ranging from 800 to 850, which is considered super prime. The average FICO score around the nation was closer to 700. The median mortgage borrower, as a result, has a credit score of 750 (which is only down a little bit).

Be Cautious About Loan Programs

You might be tempted to take out whatever loan possible and go straight to the home you want. You want to be cautious about this. A good credit score can open up doors for you, but not all doors are meant to be walked through. Nearly 2% of all mortgages today are in delinquency, with 2009 seeing this reaching as high as 8%. Your loan needs to have a reasonable interest rate and be well-suited to your budget, even though higher ones can look more tempting at the start.

Reach Out To The Best Mortgage Companies

You don’t have to do everything on your own. An independent mortgage broker can sit down with you and your family to talk shop about this home you want to buy. The average new mortgage balance in 2017 was $245,000, with the average down payment hovering at a little over $12,000. According to data from the National Association Of REALTORS, over five million existing homes were sold in 2017. The same year saw an impressive 610,000 newly constructed homes being sold, too.

The best mortgage companies are just a phone call or a click away. Set yourself up for success by keeping your mortgage options as wide as possible.

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