Getting the Best Mortgage as a First Time Home Buyer in Montana
First time home buyers in Montana are crucial to ensuring that the real estate market continues to thrive. In fact, according to the National Association of Realtors, first time home buyers account for 40 percent of all real estate sales.
Purchasing a home for the first time can be an incredibly exciting time. For many first time home buyers in Montana, it marks an important milestone in the transition from renting to homeownership.
No matter whether you’re ready to start house hunting or simply exploring the possibility of buying a home in Montana, understanding your options as a first time home buyer in Montana can make a world of difference when taking out your first mortgage.
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How Much House Can a First Time Home Buyer in Montana Afford?
For first time home buyers in Montana, affordability is much more complicated than simply finding out how large of a mortgage you can get approved for.
Montana first time home buyers will also have to take into consideration additional affordability factors, like the closing costs of purchasing a home, monthly budget, and debt-to-income ratio.
Visit any of the Montana first time home buyer calculators below to analyze factors like location, household income, down payment, and monthly debt.
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How to Get the Best Montana First Time Buyer Mortgage Rates
Finding the best mortgage rates for first time home buyers in Montana won’t happen immediately. It takes time and research to find what works for your unique financial situation.
If you’re interested in exploring your options, consider using the tips below to find the best rates for first time home buyers in Montana.
Boost Your Credit Score
Just as with any loan, better credit scores will provide better interest rates. First time home buyers in Montana can position themselves for a better mortgage rate through improved credit scores, even when it comes to refinancing down the road.
For example, according to myFICO, refinancing with a credit range of 760-850 can make borrowers eligible for rates of 3.5 percent.
Compare that to 5.1 percent rates for credit scores between 620-639, and borrowers could potentially be looking at savings of 1.5 percent or more.
Even if it’s just a few points, an improved credit score could certainly help you get the best rates for a Montana first time home buyer mortgage.
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Save Up for a Down Payment
Saving up for a significant down payment may not be fun, but it can go a long way in boosting your chances at better Montana first time home buyer loan rates.
Most Montana mortgage lenders require at least 3 percent, but putting 20 percent down is the best way to provide long-term savings.
A larger down payment will not only affect the rate for a Montana first time home buyer loan, but it can also save you from purchasing mortgage insurance, saving money over the life of the mortgage.
Compare Prices
Comparing current Montana first time home buyer loan rates from multiple lenders can be tedious, but it’s the best way to ensure that you get an affordable mortgage.
Be sure to check multiple providers of Montana first time home buyer mortgages, including online lenders, banks, and credit unions before committing to a lending product.
This is particularly relevant for first time home buyers in Montana, since many mortgage lenders will offer special rates and terms for a first time home buyer in Montana.
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Conclusion – Getting the Best Montana Down Payment Assistance & First Time Buyer Programs
For many Montana first time home buyers, saving for a down payment and the closing costs associated with a mortgage is one of the biggest obstacles.
Home loans can become more manageable when using Montana down payment assistance and first time home buyer programs in Montana.
Depending on eligibility requirements (income, location, tax bracket, etc.) you may be able to save thousands off your down payment or closing costs by applying for a first time home buyer program in Montana.
For a list of statewide programs and specific cities and counties offering Montana down payment assistance, visit the U.S. Department of Housing to explore your options as a first time home buyer in Montana.
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