First-time homebuyers who are finding the perfect home and applying for a mortgage to secure it are facing a fairly steep learning curve. Everything that goes into buying a house for the first time is unfamiliar territory, leaving many to make a number of mistakes or simply missing something that would have saved them a lot of money. Here are a few lessons that homeowners wished they had known before they got their first mortgage.
- Big banks may not always be the best option. While many presume these larger lenders will have more resources at their disposal, they may also have more red tape, and it may take longer to get approved. Small local banks are often fairly quick and can provide just as many mortgages as other lenders. It may also be advantageous to work with a local bank if the potential homebuyers know someone who works there.
- Mortgage rates can change very quickly; sometimes they even change throughout the day. Homebuyers who are offered a good rate need to lock it in as soon as they can because it may not be available for long.
- Paying extra adds up. Once homeowners have their mortgages, many fall into the habit of making their monthly payment without really even thinking about it. Those who take the time to pay extra each month can cut years off their mortgage because that extra is generally applied to the principal.