There are couple of other elements that should be researched and understood when going for your first time mortgage. These include the size of the loan needed, for instance. With recent house prices skyrocketing, many traditional loan applications were soon exceeding industry standards. This created a need for a new loan with higher risk.
	As opposed to conventional home loans, jumbo loans started appearing on the market for home-buying. And along with the higher risk came higher costs and higher interest rate charges. Bigger is not always better. Along with larger loan costs, first time mortgage borrowers should also take into account that any personal record of delinquency, credit problems, bankruptcy or excessive debt will make it much harder to borrow again. Lenders are not very interested in lending to people who have already established a pattern of high-risk and problems with borrowing. The ability to pay down a loan tends to be overlooked by first time buyers mainly because they can’t imagine at the time having more money than what is needed to pay the monthly mortgage and their bills. However, over time, people do find the opportunity sometimes to make early payments or reduce the loan significant on a one-time basis. You want to make sure before agreeing to a mortgage that you can make early payments or a payoff without penalties. Not all lenders want their money back so quickly and would prefer it came back with more interest included. Another consideration is whether your lender is going to remain your lender for the duration of the loan. Many first time mortgage borrowers learn after the fact that it is a common industry practice that their first lender sells their loan to another bank or lender. So a borrower could find themselves working with two or three different lenders over the life of a mortgage. This can be confusing and frustrating, dealing with different players who were never expected. It can also cause problems with lost or misdirected payments and late escrow tax payments to local governments. Not being diligent in tracking these switches can result in mistakes that affect your credit record negatively. A payment grace period is also an important feature. Some lenders want their money right away when it is due monthly. Others allow up to 15 days from the monthly due date. This is good information to know ahead of time as life has a way of putting you out of town sometimes when bills are due. Finally, a remaining aspect is the business of interest on your escrow account. As we mentioned before, your mortgage payment will include amounts for taxes. These dollars are put in an escrow account and once or twice a year your lender then pays your tax bill in its entirety. However, while that money is sitting, it’s like any other savings – it’s collecting interest. Some lenders pay you back with a once-a-year refund. Others roll it into your balance when they recalculate your escrow for the next year, still others say nothing and pocket the interest.