First-Time Homebuyers Face Decisions that Affect Their Financial Future

For first-time buyers, taking the step into home ownership is one of the pivotal financial decisions a person will make in their lifetime. There are many things to consider when embarking on this venture. Literally hundreds of loan programs are available for first-time homebuyers, and it is important to find the one that best fits your personal long-term goals.

First and foremost, you must have a mortgage consultant who is willing to take the time to know what your long-term goals are. Communication is the key, especially for first-time homebuyers. Prospective buyers sometimes turn to Internet-based services just to see what current interest rates are. But a faceless web site will not take the buyer’s future financial planning into consideration or guide the potential first-time borrower through the many nuances of the loan process. When shopping for a home loan, be wary of web-based services that offer programs that seem to good to be true. It is very unlikely that an experienced and qualified loan originator whose business is based upon referrals will use unscrupulous tactics such as this to get new customers in the door!Once you have found a mortgage consultant that you feel comfortable with, lay out your goals on the table because it will have a great impact on choosing a loan program that meets your needs. One of the most important things to consider is how long you wish to borrow the money for. For example, if you know you will only be in the home for five years, it wouldn’t make sense to opt for a 30-year loan or pay points up front to secure a lower interest rate. You would not be in the home long enough to benefit from it. Your mortgage consultant should be able to narrow down the programs based on the information that you have given them, and present you with an easy-to-read spreadsheet that clearly defines viable options for your interest rate and amortization schedule, monthly payment and any possible savings you may realize by paying points up front. Moreover, a reputable loan originator will not hesitate to share this information with your tax advisor or financial planner so they may offer additional feedback on your behalf. Home ownership imparts a rewarding vehicle for building wealth and a strong financial future. Your mortgage consultant should be there not only when your loan closes, but should also provide you with ongoing service to assist you in managing that debt over time.

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