Some people are apprehensive about buying a home for the first time. However, a helpful mortgage company makes all the difference. There are many different loan products, and mortgage lenders guide people in the right direction. It is always a good idea to be prepared when meeting with lenders. Be sure to bring all the requested documentation to the initial meeting.
The most important information the mortgage lender needs is verification of income and employment. They want to see tax returns and pay stubs. Further, lenders want to know about other available assets. Checking and savings account statements are required. Additionally, the first time home buyer in Tucson should bring proof of any IRA’s or other investment accounts. Nova Home Loans, a lender in the Tucson area, is always available to help prospective homeowners. The lender also pulls a credit report on prospective clients. Lenders want to see a low debt to income ratio. Most lenders prefer that clients spend less than 36 percent of their income on debt.
Any first time home buyer in Tucson needs to learn about different mortgage products. A fixed rate mortgage is an option that ensures the payments stay the same. Individuals are better able to budget knowing what they have to pay every month. Fixed rate mortgages have slightly higher interest rates, but individuals can refinance after a year or so. Usually, homes are financed over thirty years. Mortgages with a shorter life span usually have higher monthly payments.
The adjustable rate mortgage (ARM) has fixed rates for a certain time period. At the end of the time period, interest rates start going up annually. Some people prefer an ARM because they get a lower mortgage payment initially. Homeowners are able to refinance if they can’t make the increasing payments. The VA loan allows qualifying veterans to purchase a home costing up to $412,000 without a down-payment. Further, it is easier to qualify for a VA loan than some other products. The most important thing is qualifying for a loan product that meets all your needs. There is nothing like the joy of owning a home for the first time.
