Things you should know about mortgages as a first-time homebuyer

by Garden Home Realty LLC 03/10/2025

What to know about mortgages as a first-time homebuyer  featured image

If you’re a first-time homebuyer, you may find yourself in need of a mortgage loan. Over 60 percent of homeowners have a mortgage, so becoming familiar with the loan process can be beneficial to your homebuying journey. 


What is a mortgage? 

A mortgage is a legal agreement between a borrower and a lender where the borrower, once approved for a set amount, pays back the lender over a specified term.  

Most mortgage loan terms range from 10 to 30 years, with the 30-year term being the most popular as it often comes with lower monthly payments. However, it’s good to note, the longer you take to pay off the loan, the more money you’ll pay in interest over the lifespan of the loan. 


Get ready for preapproval 

Getting preapproved for a mortgage loan is a great first step, as it allows you to see if you qualify. It also can give you a good idea of the financing you’ll have to work with to purchase a home. During the preapproval process, your lender will collect your financial information to see if you meet their borrowing requirements.  

You’ll most likely will need to provide W-2s, tax return info, your credit score and a few other items for preapproval verification. 


What is a mortgage composed of? 

A mortgage loan is made up of 4 primary components that include the principal, tax, insurance and interest. 

The principal amount is the amount of funds still left to pay off the loan, whereas interest is the fee your lender charges for taking out their loan. 

Your mortgage provider may also collect property taxes on your behalf through your monthly mortgage payment to be used annually. If you put down less than 20 percent on your home’s down payment, your loan provider may require you to pay for mortgage insurance to protect them if you default on the loan. 

Owning a home and paying for a mortgage is a significant commitment, so consider speaking with a lending officer. They can help you explore your options, get a better understanding of the process and find the right loan for your next home purchase.


About the Author
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Garden Home Realty LLC

Welcome to Garden State Realty LLC, a trusted boutique real estate brokerage located in Livingston, New Jersey, proudly serving clients from across the globe. With a passion for real estate and a track record of success, we’ve built a reputation for excellence, professionalism, and a personal touch that sets us apart.

At the heart of our service are the key traits of exceptional real estate professionals: unwavering integrity, in-depth market expertise, innovative marketing strategies, skilled negotiation, and a well-connected professional network. These qualities define how we do business and ensure that every client receives outstanding results.

We are committed to delivering top-tier service by putting your needs first, actively listening, communicating with clarity, and responding promptly to your concerns. Whether you're buying, selling, or investing, you can count on us to be your reliable partner every step of the way. Welcome to a real estate experience where your goals become our mission.

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