There is a plethora of questions people have when they are about to buy a house for the first time. This is understandable. Buying a house is the single most important investment a person or family will make in their lifetime. Questions about interest rates or how long to carry mortgages are some of the most common asked. Where to apply for financing and which realtor to use are some others. Many of these questions can be answered with free online tools like the mortgage rate calculator. It can tell you how much your monthly and indicate whether the purchase is affordable. What are some of the other more common questions?

How To Find A Lender?

Whether looking for a new loan or a mortgage refinance – shopping for a loan is like shopping for any other major purchase in your life. Shop around for interest rates because a half a percentage can equal a lot of money over the course of a 30-year loan. Different lenders will have a different fee structure as well. You are qualified real estate broker can advise you about which lenders in your area and what they are offering. Of course, you could find a lender or a mortgage provider from advertisement or phone book and then interview each one about their interest rates and loan process.

How Much Of A Down Payment Will I Need?

This will depend on many factors. First, remember that a larger down payment can significantly reduce the monthly cost. The price of the house and its market value along with the type of mortgage used can determine the down payment. Other factors such as credit history can also play a role for down payment. In general, conventional mortgages will require 10 to 20% of the purchase price as a down payment. However, FHA loans only require 3 percent while military-veteran home loans require zero down.  There are special cases where you only have to put 5% down as in the case of 95 mortgages.

What If I Have Bad Credit?

If you fail to qualify for conventional mortgages there are many federal mortgage programs available. Contact the Department of Housing and Urban Development to find their counseling agencies that can help you look over your options. Sometimes your local government will offer home buying programs geared to help the people in their community. This information can usually be found at the mayor’s office. Then, there are private investors that will finance property for those with less than perfect credit however expect high interest rates. Be sure to use your mortgage rate calculator to decide you can afford a payment with a higher interest rate.

What About HUD Homes?

Homes that have been repossessed by the Housing and Urban Development Department can sometimes be a very good deal. They are sold at market value as quickly as possible because the Department does not want the homes on their books too long. This makes them a very motivated seller. You can check out how to buy a HUD at their website or contact your local real estate broker for more information. The paperwork process will be intense but do not let that discourage you because interest rates are low and the price will be right.

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