Buying your first home is an exciting milestone. However, if you’ve never purchased a house before, finding the right loan to finance the investment can be a challenge. Fortunately, mortgages are fairly straightforward, and the team at Honolulu’s Hawaiian Tel Federal Credit Union is happy to guide you through the selection process. Here, they explain how to find the best mortgage to finance your new home.
Choosing a Mortgage Loan
Be Realistic About What You Can Afford
When you first start viewing houses, you’ll likely see those that are well within and far outside of your budget. Though it’s important to understand what homes at each price point offer, only purchase a house you can reasonably afford. Consider how large of a down payment you can make before applying for financing. The average down payment for first-time homebuyers is 20% of the asking price. Then, make sure you can afford the monthly payments on the mortgages you qualify for. If the payments are too high, you may need to look for a different property. The last thing any homeowner wants is to get in over their head from the beginning.
Look at the Financing Options
Mortgages can be broken down into two main types: fixed and variable interest rate loans. Fixed mortgages have interest rates that are guaranteed for the life of the loan. Variable-rate mortgages often start with lower interest rates than fixed loans, but those rates can fluctuate over time. Ultimately, the best option for your needs is the one you’re most comfortable with.
Don’t Be Afraid to Compare Offers
Just like any major purchase, you’ll want to compare offers on home loans and mortgages. One financial institution’s offer may be overshadowed by an offer from a local credit union. Rather than settling for the first deal, compare additional mortgages. You don’t have to rush out to every lender and get quotes from each—just make sure you have a few offers to compare before making a decision.
If you’re looking to buy a home, let the mortgage specialists at Hawaiian Tel Federal Credit Union help you find the best loans for your new house. Their friendly staff will secure the financing you need to buy the home of your dreams. Learn more about their services by visiting the website and take the first step in becoming a homeowner. To schedule a consultation with a lending specialist, call (808) 832-8700 today, and follow their Facebook, Twitter, and Instagram pages for news and updates.