First Time Mortgages

One of the best first time mortgage advices I ever get is actually called “Shoes” experiences. It is definitely helpful when you are getting your first mortgage to finance your house purchase, so I’m going to explain a little about the concept.

When you go out on a shopping spree with the primary goal of finding a new pair of shoes, you will surely go straight to the shoe store as soon as they get to the mall. You have a certain goal in your mind and you are excited to accomplish the goal as soon as possible. You find a nice shoe and try it on only to see it is perfect for you. The price is also right, so you close the deal, right? Wrong! At this point the best thing you should do is search the mall for other shoe stores and try every possible pair of shoes until you know for sure that you are getting the best one.

The same principle should be applied to first time mortgages. I know you are excited about your first home purchase, but making sure the deal you are getting is the most beneficial one before placing your signature on the paper is always the best way to do it.

One of the most important advice I always give friends and colleagues when they ask me about mortgage, especially on first time mortgages where you may get a little too excited, is to select the right house that you can actually afford. Yes, you can opt for longer mortgage period to make the monthly payments affordable, but you are actually paying more in the long run and it is far from being profitable.

Picking the right house is essentially important. That is why you need to keep an open mind whenever you are on the lookout for the perfect house of your dreams. Finding the one you think is right for you may not be enough unless you know the price of the house and the possible monthly payments you would have to pay are affordable.

I also advice people who are thinking about buying a new house — or their first house — to get preapproved for a mortgage. Not only you will get better deals and can negotiate the price for your dream house, you can also close the deal faster and increase the chances of getting the house quite substantially. This way, you also have certain limits in finding the right house at the right price.