First-Time Homebuyer FAQs
There is a lot to learn when it comes to buying your first home. Below you’ll find answers to some frequently asked questions. We hope this helps you get started. For more answers to your questions, our FORUM Mortgage professionals are happy to help at 317.558.6160 or 866.367.8600.
What are the benefits of homeownership?
Buying a home is a great investment and can be thought of like a forced savings plan. With every payment you make, you’ll be building equity in your home (the market value of your home minus the outstanding loan balance). You can also enjoy tax advantages like deducting mortgage interest. Property taxes on your primary residence and vacation home are also fully deductible for income tax purposes.*
How do I get started?
First things first, find out how much house you can afford by obtaining a free preapproval from a lender. Then create a list of your needs and wants in a home. This will help you prioritize what is most important. You can begin your search by browsing websites like Trulia
, or you can contact a realtor.
What type of loan options do I have?
There are three main types of mortgage loans to choose from. A fixed rate mortgage maintains the same rate for the life of the loan and you can generally choose between a 15 or 30 year loan term. Adjustable rate mortgages are also available where the interest rate is periodically adjusted. These might be a good option during a high fixed rate environment. Some lenders also offer interest-only loans where you pay only the interest and no principal for the first few years of the loan.
What can I expect during the process?
Once you’ve found the home of your dreams, it’s time to apply for a loan. If you choose FORUM as your lender you’ll fill out an application that will ask you questions about the home and your finances. If approved, you’ll be sent an application package with papers for you to sign and we’ll prepare your loan for closing. Next, we’ll contact you to coordinate your closing date. For more details, click here
* The above is not intended to be tax advice, was not written by a tax professional and is informational only. Please consult a tax advisor for your specific situation.