Becoming a Homeowner
Getting Started
Is becoming a homeowner the right decision for you? How do you get started? How much house can you really afford?
You will find the answers to these questions in this section, which details the steps you and your FreeLoanComparison.com lender partner will take to help you qualify for a mortgage.
Owning a Home
You will face many decisions when becoming a homeowner. We can help
you find a FreeLoanComparison.com lender partner who will work with you
to choose a mortgage loan that suits your needs.
When you are thinking about becoming a homeowner, you may want to
consider the many advantages to homeownership:
- You enjoy being part of a community and a neighborhood.
- Houses can increase in value over time, which means you increase your net worth.
- As your home appreciates in value, you build
equity in your home. This equity works for you if you decide to take out a home improvement loan or home equity loan. Increasing equity also increases the amount of cash you may receive if you sell your home in the future.
- Real estate is an important part of a diversified financial portfolio.
- The mortgage interest you pay on your affordable home mortgage is often tax deductible.
- Homeownership offers more flexibility to make changes to your living space, such as painting your walls or putting in new carpeting.
There are added responsibilities that come with homeownership:
- You are responsible for fixing and maintaining the exterior, such as roofing, windows, and landscaping; and the interior, such as carpeting, plumbing, and painting.
- You may need to purchase basic household items such as a lawn mower, garden tools, and major appliances.
- Upkeep on a house can be time consuming and costly.
Your Credit Record
Having a good credit record and high credit score means, among other things, that you pay your rent and other bills on time. Having less than perfect credit, however, doesn’t mean you can’t get a mortgage loan. FreeLoanComparison.com offers a variety of mortgage products for potential home buyers with less than perfect credit.
Whether your credit is perfect or not, you should know some terms about credit before you meet with your mortgage lender.
- Credit bureau’s compile a record of your debts and how you have repaid them. They gather their information from credit card companies, banks, department stores, and other firms. This information makes up your credit report.
- Your credit history shows how well you have paid your
debts in the past.
- Capacity is your financial means for repaying your debt.
- Capital indicates whether you have enough money for a down payment and closing costs.
- Collateral serves to protect the lender if you fail to repay the loan.
As part of the mortgage loan process, your FreeLoanComparison.com lender partner
will request a credit report, so it’s advisable to
review a copy before you meet with your mortgage lender in case there are errors. If there are discrepancies or errors in your credit report, you should contact the credit bureau to correct them.
If you fail to make your mortgage payments on time, you could
lose the home you worked so hard to purchase. If you have concerns about your credit or your ability to budget, contact your local Credit Counselor Service. They will help you find organizations that provide services such as budgeting assistance and home-buying education.
FreeLoanComparison.com does not lend money directly to consumers. Instead, we make funds available to mortgage lenders. Lenders who work with FreeLoanComparison.com have a broad array of mortgages to offer consumers.
For more helpful mortgage tips on becoming a homeowner, mortgage refinancing, home loans, reverse mortgages or a home equity line of credit, contact FreeLoanComparison.com today!
Last update: November 14, 2008
