Four Steps to Opening the Door of Your New Home

02/05/2020

Thinking About Opening the Door to a New Home?Buying a home is one of the most important and exciting decisions you can make. If you’re ready to walk the path to homeownership, knowing you want to purchase a home is just the first step. The Mortgage Loan Officers at North Shore Bank can help guide you through the most important things to do first as you start to make your dream of home ownership a reality.
 
Here’s how to get started:
 

  1. Secure pre-approval for a home loan
While it’s fun to browse online and see what’s for sale, it’s important to first establish what you can afford by getting a free mortgage pre-approval. During the pre-approval process, we look at your income and credit history to determine the amount, and then you’ll be on your way with a pre-approval certificate that shows how much you are able to borrow. As an added bonus, you’ll have a competitive advantage and negotiating power because you can prove you’re a serious and qualified buyer.
 
  1. Choose a real estate partner
Asking friends and family about their home buying and selling experiences is a great way to find the right real estate professional to guide you toward the perfect home. Or, if you have some desirable neighborhoods in mind, consider asking local chambers of commerce for referrals. Either way, it’s critical for your realtor to know the unique characteristics and market insights of the communities they serve. The right partner can then help you begin narrowing down and prioritizing important factors including the style of house and number of bedrooms as well as provide essential information about school districts and property taxes.
 
  1. Consider your down payment
Most mortgages require at least some down payment and it’s important to consider what you can afford. If you don’t have savings on hand for a down payment already, talk with your North Shore Bank mortgage expert about Federal Housing Administration (FHA), Veterans Affairs (VA), and other mortgage programs that offer down payments options. Or, consider asking a family member if they’re willing to gift funds toward a down payment.
 
  1. Understand the types of loans available to you
There are many different types of mortgages and loan programs that your North Shore Bank mortgage professional can help you understand to determine what best meets your needs and budget. Some types of mortgages include: 
  • Adjustable-rate mortgages (ARMs). In general, if you plan to live in your home for only a few years or expect your income to rise, an adjustable-rate mortgage (ARM) can work well in your favor. ARMs offer lower fixed interest rates initially, which then may go up or down during the adjustment period depending on rate conditions.
  • Fixed-rate mortgages. If you plan to stay in your home for several years and prefer the predictability of fixed principal and interest payments, fixed-rate is a smart choice.
  • First-time home buyer programs. If you’ve never owned a home, you may qualify for a first-time home buyer program, many of which offer lower down payment requirements and reduced closing costs.
  • Other types of alternative mortgages. Depending on your income, you may qualify for certain alternative mortgage programs that offer flexible underwriting requirements and reduced down payments and closing costs.
  • Construction loans. If you plan to build a new home, construction loans allow you to combine the construction and permanent financing in one mortgage. 
Helping our customers open the door to their first home is one of our favorite things to do. Contact the mortgage lending team at North Shore Bank today – we’ll be happy to guide you through these steps, right to the front door of your new home.

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