Home is the place which represents yourself and where you can do whatever you want to do and whenever you want do. Owning a home develops a sense of liberty. Buying a home gives you the opportunity to exchange your fugitive lifestyle for something permanent that belongs to you. This strong emotion motivates a lot of people to make the move to buy their own home. However, buying a home can lead to powerful financial investment as well. Although buying a house can give you a great place to live and a way to build your wealth, all these hopes and dreams come with a cost. Therefore most of the people turn towards mortgage lenders to wrap up this cost. Basically, mortgage is a loan used to buy a house. Mortgage lending companies offer several money lending services and the cost associated with each service may differ.

To start the process of buying the house, try to take advantage of all the options available in the market by involving your real estate agent. Do not walk into an open house without seeking an agent because it might not work well for you to deal with seller’s agent before involving one of your own. First-time home buyers should look for house that can add value and help them build up their property ladder. A wide range of options are available to first time buyers as many first-time home buyer programs offer minimum down payment as low as 3% to 5 %.

Your real estate agent will help you to formulate a budget and let you decide how much money you want to offer for the house along with any conditions you want to ask for. Your agent will then present your offer to seller’s agent; the seller will either accept your offer or present you with a counter offer. You can either accept it or look for more suitable options or decide to call it quits. If you reach an agreement, you’ll make a good-faith deposit and the process then transitions into escrow. Once you have decided the amount you are going to spend on the house the next thing is to get a mortgage.

A fixed-rate mortgage charges a specific amount of interest that does not change throughout the length of the loan. This is the most conventional form of loan used to finance the purchase of home and most people have in their minds when they think about mortgage.

On the other hand, a variable-rate mortgage is the amount of interest that can be adjusted. The monthly payment can be adjusted according to the interest rate. Over the time, the interest rate increases. Therefore, the monthly payment in variable-rate mortgage tends to move higher.

Lenders will examine your credit score, because you will be borrowing money. Therefore, it is important to maintain a good credit score by paying all the loan payments and before making a deal with the mortgage company.

To get the idea of how much you can borrow, the lender can pre-qualify for a mortgage, which means that you will provide information about your assets, income and liabilities to the lender and based on this data, the lender will estimate how much money you will be able to borrow. Knowing the amount beforehand, allow you to determine the price range of homes before you go house hunting. Once you have chosen your mortgage lender and received your pre-approval , you are all set to buy your house.

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