When it comes to buying their first Staten Island home, many people are unaware of the basic facts of how their mortgage works. A survey by Zillow indicated that more than one third of potential first time homebuyers don’t understand the most fundamental details about their mortgages. This lack of understanding could cost you thousands of dollars, so make sure that you understand your mortgage before you make a serious financial commitment.
Here are a few of the important things that many people don’t know about mortgages and how they work:
Mortgage Rates Can Vary Depending on the Day
Did you know that mortgage rates can change daily? Simply by monitoring the changes in these rates, you could enjoy the benefit of saving a lot of money. Even a small percentage of difference could add up to thousands of dollars that you end up saving per year. This is why you shouldn’t choose the first rate you see – take your time to shop around.
The Bigger the Down Payment, the Better
Don’t think you need to save up a lot of money on a down payment? The truth is that the more you can save up for a down payment, the better you will be in the long run. You will own a larger stake in your home, you can take out a smaller mortgage, your monthly payments will be smaller and you will end up paying less interest over the life of the mortgage.
Lender Fees Are Open to Negotiation
When you apply for a loan, you will need to pay lender fees. However, most people don’t realize that they have the ability to negotiate their lender fees. The fees are different from one lender to the next and they are always open to negotiation so don’t be afraid to bargain.
Pre-Qualified Doesn’t Guarantee Financing
You might be “pre-qualified” for a loan, but this doesn’t mean that you have secured financing on your home. Many people think it does, but it only means that the lender has calculated approximately what you can afford. You will not have secured your financing until the lender has officially approved your loan.
These are just a few examples of important mortgage info that most people might not know. If you are looking to purchase a Staten Island home, contact me for more information at firstname.lastname@example.org or 718.370.3200.