Tips for First Time Mortgage Borrowers

In today’s economic climate many people are making the decision to purchase their first home; this means many young people are taking on their very first mortgage. It’s an exciting time in anyone’s life to become a homeowner and to write that very first mortgage check (it’s really mine!). However, having a mortgage is a serious commitment. You can’t just walk away from it without serious ramifications, which means you need to know how to prioritize your mortgage.

Understand the Ramifications

If you make even one late mortgage payment, you will negatively affect your credit score. Before you consider making a late payment because you’re finances aren’t in order, check with your mortgage company to see if you have a grace period. Many offer one that lasts 10 days, giving you the option to make your payment up to 10 days after its due date without financial ramifications.

Pay Too Much

If you can afford it, pay more than your mortgage each month. This helps you pay down your principal balance. It also helps you in a time of need. For example, if you double up on your mortgage payments each month and you find yourself in a situation one month in which your payment is not something you can afford, you’re ahead and your mortgage company will be willing to work with you.

Call Immediately

If you lose your job or have a temporary setback, call your mortgage company. They’ll want to know and might even be willing to work with you to help you lower your mortgage payments temporarily until you are back on your feet. Don’t just stop making payments or make them late on a continuous basis; ask for help and you’ll probably get it. Your mortgage lender is more likely to work with you if you’re up front about your situation immediately than if you’re already way behind on your payments.

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