5 Mortgage Terminology First Time Home Buyers in Kirkland Should Know 

Kirkland is one of the most beautiful places to live in. Whether you are looking for a home to live in or for renting, this is the best time to purchase property in Kirkland as per the reports. Buying a home is an exciting feeling but it comes with a lot of paperwork if you are looking to purchase a home via loan from the mortgage lender. If you are a first time home buyer then before availing request for the loan you need to understand the mortgage terminology first. This blog we have designed for the all the first time buyers who are willing to purchase home in Kirkland and don’t know about the home buying procedure. So, let’s get started. 

  • Starts savings for the down payment: The first terminology you need to understand of the mortgage loan is down payment. Down payment is the initial payment to purchase a home. It’s common to put 20% down, but many lenders now permit much less, and first-time home buyers programs allow as little as 3% down. But putting down payment less than 20% may mean higher costs and paying for mortgage insurance, and even a small down payment can still a hefty. For example, a 5% down payment $200,000 home is $10,000
  • Mortgage options: With so many types of loan available. It is important to understand the basic difference. Below we have mentioned different types of loans. 
  • Conventional loan: A conventional loan is a type of loan that is not insured by the government. Conventional loans tend to feature lower interest rates than government insured loans suchs as FHA loans and VA loans. 
  • FHA loans: Loans insured by the Federal Housing Administration Permit down payments as low as 3.5% 
  • VA loans: Loans guaranteed by the department of Veterans Affairs sometimes requires no down payment at all. 
  • Credit score: When applying for a home loan, the very first thing you need to check is your credit score. As per the FISCO report the credit score of the borrower must be higher than 750 if they want a loan at the lowest interest rates. A higher credit score implies that the borrower always pays his due amount on time. If your credit score is lower than you need to clear all your debts and increase your credit score. 
  • Compare mortgage rates: Many home owners buyers get a rate quote from only lender, but this often leaves money on the table. Comparing mortgage rates from at least three lenders can save you more than $3,500 dollars over the first year of the loan. So, before making a deal with a particular mortgage company, review other Kirkland mortgage companies as well and then compare their rates. 
  • Get preapproval letter: You can get pre-approved, which simply gives you an estimate of how much a lender may be willing to lend based on your income and debts. But as you closer to buying a home, it’s smart to lend you, and your finances and confirms in writing how much they are willing to pay. On the basis of pre-approval you can buy a home easily. 
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