| For first time home buyer, buying a new home is | | | | could give you the time to improve this score. |
| a huge step that you should research and think | | | | This may mean waiting six months to a year |
| about before you dive in. Most people do not | | | | before buying the home, but it could also mean |
| have the funds to buy a home outright. Thus, a | | | | better rates on this home loan. |
| mortgage or home loan is usually needed. The | | | | How Long Do I Want This Loan? |
| following are three key questions you should ask | | | | The amount of time that you have a home loan |
| yourself before buying your first home. | | | | affects the monthly payments. Lower payments |
| What Can I Afford? | | | | tend to suggest that you scored a low interest |
| Be realistic about your price range for this loan | | | | rate or that you agreed to have this loan for |
| and your home. If you overestimate, you may | | | | quite some time. Some people may have a home |
| not be able to keep up with your monthly | | | | loan for a decade whereas others may have it |
| payments and your home may be foreclosed | | | | for two or more decades. Think about your credit |
| upon. Be smart about this decision so that you do | | | | score and the policies of the bank when deciding |
| not get yourself into a tight bind. Consider not | | | | the terms and duration of this home loan. |
| just your current income but your future one too. | | | | Take the time to consider the above questions |
| What's My Credit Score? | | | | before you invest in a home. This is a chance to |
| Home loan interest rates are calculated based on | | | | weigh all of your options and take a good hard |
| your credit score. Request your credit report so | | | | look at your finances. Know what you want |
| that you can see what exactly is on it. Removing | | | | before you start shopping around for the best |
| an error or two could increase your credit score | | | | interest rates and terms. This increases the |
| and help you nab competitive interest rates. | | | | likelihood that you will get what you want. |
| Additionally, knowing what you have to work with | | | | |