What You Need To Know Before Getting A Mortgage

by Arne DeWitt Group 10/22/2018

If you are thinking of buying a home, you probably have been getting your finances for some time. First-time homebuyers need the right information to avoid making big mistakes when they purchase their homes. The leap into home ownership is a big one, and you’ll want as much information with you along for the ride. Below, you’ll find a crash course on mortgages for first-time homebuyers. 


Think Ahead


Every homebuyer needs to prepare ahead of time for the process to be smooth. Research different lenders in your area and see what their rates are. If you talk to your lender about your goals and what type of loans you’re looking for, you’ll understand all of the costs that you’ll face ahead of time. You don’t want any surprises when it comes to signing a contract for a home.


Every Mortgage Is Different


It’s easy to think that all home loans are created equal, but they aren’t. The diversity in types of home loans is why you need to research and meet with a lender ahead of time. Talk to your real estate agent and see who they suggest. Your agent is a useful resource because they want your entire transaction to go smoothly for everyone involved. There are many different kinds of mortgages, and you need to make sure you’re getting the loan that’s right for you. Be sure you understand the specifics of each loan before you sign on.       


What You Need In Order


Before you even head into the home buying process, there are a few things that you’ll need including:


  • Cash for a downpayment
  • A budget
  • Knowledge of all of your finances
  • Where you’d like to look for a home
  • An idea of how much you can spend on a home
  • Information to get pre-approved including tax returns, proof of income, and bank statements


Once you have saved up cash for a downpayment, it’s time to take a look at your budget. Can you afford a monthly mortgage payment in the price range that you hope to buy? How much money will you have left over each month? Should you adjust your expectations? 



You’ll need to save up a bit of cash before you know that you’re ready to buy a home. It’s recommended that you have at least 20 percent of the purchase price of a home to put down towards your loan. The more you put down, the lower your monthly payments will be on the mortgage. So saving is the next big step in securing a mortgage in the smoothest possible way.     

About the Author
Author

Arne DeWitt Group

There are a lot of real estate agents serving the South County real estate market, but few with the longevity, experience and professionalism of Arne DeWitt.

Arne graduated from California State University, Northridge with a BS degree in Business Administration and soon put his business skills to work in his real estate career with RE/MAX that now spans more than 30 years.

During his career Arne has listed and sold more than 1500 homes, resulting in 750 million in sales and garnering every production award given to top producing RE/MAX agents – including the prestigious Chairman’s Club, Hall of Fame and Lifetime Achievement Awards.

Never one to rest on his laurels, Arne has continued to hone his professionalism and knowledge. Throughout his illustrious career he has earned several esteemed professional real estate designations such as GRI (Graduate REALTOR Institute), CRS (Certified Residential Specialist) and ERC (Employee Relocation Council)

But it’s not the awards and industry accolades that fuel his passion – it’s a genuine desire to help his clients achieve their real estate goals and dreams. Arne is most proud of the high percentage of referrals and repeat business he receives from satisfied clients who shower him with thank-you letters with comments such as:

“You made the selling of our home a pleasurable experience. You should clone this guy!” and “Arne did everything he said he would do and more!”Arne Dewitt

When not working as your community relocation specialist, Arne likes to unwind by participating in sports such as golf, fishing, and hockey. He also enjoys coaching boys’ sports and spending time with his sons, Wesley and Matthew. Arne is active in his church and donates time and income to individual charities.