Federated Lending Corporation

Advice on purchasing your first home

If you are considering buying a home in Bucks County PA or Mercer County NJ there are some steps you can take that can help you with saving on your first time mortgage. Naturally, there are factors that go into obtaining a mortgage which may be out of your control, but there are still ways to save big.

• Examine your credit worthiness — one of the most important steps you can make when you are considering ways of saving on your first home mortgage is to make sure your credit is good. The better your credit score, the more favorable loan terms you can get; this means you will save money immediately and save money over the long term.

• Have a good down payment — the more money you can put down on your first home, the better off you will be. Not only will you be able to get a lower interest rate, if you put down more than 20 percent of the purchase price, you will be able to avoid paying for mortgage insurance which can save a substantial amount of money.

• Consider negotiating — you can save hundreds of dollars by negotiating. First, negotiate with the seller to see if they are willing to pick up some of your closing costs, will accept less money for the home and negotiate with your lender to see if some of the closing costs can be reduced. You will not know unless you try.

• Consider your loan carefully — some borrowers may benefit by accepting an adjustable rate mortgage. These loans typically have lower interest rates. Other borrowers may benefit by checking out loans that are not 30-year loans; 20-year mortgages can save you thousands of dollars over the life of your loan.

Remember To Shop Local

There are numerous opportunities for saving money on your first home mortgage; another option you should explore is shopping for your mortgage loan close to home. Remember, if decisions are made locally, you stand a better chance of getting a loan that matches your needs and you may be able to negotiate easier with a local lender than a national lender.  

Shopping for a new home is exciting and there are several ways to save money both in the short-term and the long-term. Consider getting a preapproval for your loan before you start shopping for a home; this gives you more negotiating power with sellers since they can feel confident they have a buyer who is ready to close the deal fast.

Buying a home is a big financial commitment; if you are interested in obtaining a first mortgage in Bucks County, PA contact Federated Lending for help. We are local, we can help with a variety of loan programs and work with you to get your loan preapproved before you start home shopping.