Need house buying tips? Get advice and help buying a house using this free lesson, which covers the main things you need to think about.
Now that you know more about the homebuying process, consider what you'll need to do to secure a home loan or mortgage. Shop around and compare. Check your local bank or credit union, mortgage brokers, and websites.
Remember that a bank or other lending institution will check your credit history before deciding whether to offer you a loan, as well as the amount of the loan. This loan or mortgage is paid back to the bank on a monthly basis over 20 to 30 years.
A monthly mortgage payment consists of:
Before approving a mortgage, your lender will also look at the comparative value for similar homes in the area where you are buying in to make sure the loan is a good investment.
Housing prices can vary significantly from location to location. Some loan programs such as Fannie Mae and HUD have strict guidelines as to the condition the house must be in before you buy it. Most loan companies also require things such as termite inspections and roof repairs if needed before approving a home loan.
There are two basic types of mortgages: