If you’re preparing to buy your first house, you may already be feeling the nerves creep in, as you navigate the confusing waters of getting a mortgage.
Fortunately, if you follow these helpful tips and tricks, you’ll find your dream of home ownership coming true before you know it. In fact, the processes of applying, qualifying for and closing a home loan don’t have to be difficult or stressful at all, if you choose a qualified local mortgage company to assist you in your quest.
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Establish a Budget
Determining how much you can afford to spend each month on your mortgage payment is an important first step. That way, you can limit your home search to those that fall within a realistic, affordable range.
Your ability to qualify for a home loan will affect your budget as well. For example, if you have a lower credit score or if you currently have a lot of debt, you may have to settle for a higher interest rate loan. Your mortgage lender can help you determine your budget, based on what loan programs are currently available.
Make a Wish List
Real estate agents recommend breaking your wish list into three categories: the features your new home must have, those features that you would strongly prefer to have, and a final category of items that you would like to have but you can honestly live without.
Remember that your wish list will affect the price of your new house. For example, if you want to buy in the area’s best school district, you can expect to pay a premium. One way to offset this bump in price is to compromise on other must-haves, such as how many bathrooms you really need or whether a pool is truly necessary.
If you choose a mortgage broker – who can shop around to find the best home loan rates for you – you might be surprised by how much of your wish list you can make a reality.
Choose Your Mortgage Company
For a first time home buyer, selecting the right mortgage company is almost as important as choosing the perfect house.
The home loan application process is daunting for many would-be buyers and, in fact, fear of the unknown prevents many people from pursuing their dream to buy a house. Look for a mortgage broker in your area that has streamlined the process, to make it as simple and stress-free as possible. When you’re interviewing lenders, be sure to ask how they ensure an on-time closing, as this is critical in today’s highly competitive real estate market. Miss your closing date and you could lose not only your dream home but your earnest deposit and any out-of-pocket expenses, such as a home inspection or appraisal.
Before you begin, you may want to familiarize yourself with the application and qualification process. You can check out an example of a three-step mortgage approval process at www.integritylending.com/. Essentially those steps consist of:
- Find the best possible interest rate
- Secure a mortgage pre-approval
- Get a guarantee you’ll close on time
Congratulations on making the decision to take this important step toward home ownership. Buying your first home is an exciting experience, and one that you can relax and enjoy when you have an experienced mortgage company to assist you.