Home Purchase

Posted In: Mortgage Basics

For most people, purchasing a home is their single biggest lifetime expenditure. Unless you have hundreds of thousands of dollars tucked away for a straight purchase, you'll have to pay off your home purchase in installments, via a mortgage. Typically, your mortgage consists of two components: your initial down payment; and ongoing monthly payments that can last 30, 40, even 50 years, depending on the type of mortgage you choose.

Purchase Pitfalls

Experts suggest doing a significant amount of research and legwork on your own before you start shopping for properties. There's a lot of great information out there, especially in books and on the Internet. But beware that much of this information is rather generic. The housing market is constantly evolving, so predicting which way rates will go, and how they affect mortgage products, is very difficult.

Unfortunately, many new home buyers don't understand the implications of high interest payments. A difference of a single point on your interest rate can translate into hundreds of thousands of dollars over the life of your mortgage. So if you lock in at a rate that's higher than ideal, you could suffer chronic financial and emotional strains, and ultimately run the risk of foreclosure.

Another aspect of the mortgage industry that causes problems for first-time buyers are all the different mortgage types that are available. In addition to fixed rate mortgages, there are several different types of adjustable rate mortgages, many of which are interest only and can be significantly affected by interest rates and margins.

Expert Help

It's all very daunting. But fortunately there are resources available, like America's Lending Partners' Help Center. And there's more good news! America's Lending Partners offers a free, no obligation service which allows you to get up to four home loan offers from some of the nation's leading lenders.

If you need further help with your home purchase, you should also consider a Mortgage Planning service. An experienced mortgage planner can evaluate your mortgage needs and financial goals and create a no obligation mortgage plan tailored to your situation. And if you like your mortgage plan, your planner can then shop around for you, and get you the best rate.

Mortgage Planning is a new concept that is much more than just a brokerage. Mortgage planners can guide you through the home buying process every step of the way. And you can rest assured they are not only experienced mortgage professionals, but also licensed and ethically certified.