To begin looking for a home, soon-to-be borrowers should look for what they can afford. It is generally recommended that mortgage payment should not exceed 28% of your gross income. This figure includes your mortgage payment and homeowner’s insurance. First time homeowners may often be surprised by how many mortgage options are available. To learn about all of them without dealing with many different individuals, using a mortgage broker is recommended.
Some of the options that new borrowers learn about are the traditional and non-traditional mortgage programs. The traditional 30-year fixed mortgage locks your interest rate and locks your payment. The advantage of this option is stability however many non-traditional mortgage options cater to people that do not plan to be in their home for the long term or that do not have the down payment for a traditional mortgage.
Borrowers need to remember that each mortgage option has pros and cons. A responsible mortgage broker will tell you the pros and cons up front.
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