Buying a home can be exciting. However, it can also be daunting – especially if you’ve never been a homeowner. However, by following a few simple tips, you can alleviate much of the uncertainty and frustration and make the process easier and much more enjoyable.
How Much House Can You Afford?
By inputting your loan amount, interest rate, loan term and other factors into a mortgage calculator, you can estimate your monthly mortgage payment. By realizing what you can realistically afford, you can avoid overcommitting yourself financially. Of course, you are always welcome to meet with our mortgage lending professionals to evaluate your situation.
Know All of the Costs
The price of the home is obvious but are you aware of the other expenses that come with buying a home? Be sure to account for homeowners’ insurance, windstorm insurance, and possibly flood insurance. An inspection may uncover possible issues with the roof, plumbing, electrical, or HVAC system that need to be addressed. You may also be responsible for homeowners or condo association fees to maintain common areas.
Get Prequalified Before Home Shopping
Knowing how much you can afford is one thing. How much you will be able to borrow is another. Getting prequalified by your bank gives you a ballpark idea of how much you can borrow and also shows realtors and sellers that you are a serious home buyer. To get prequalified, contact a mortgage lender or apply and get prequalified online.
Boost Your Credit Score
The better your credit score, the more desirable you are to mortgage lenders. However, boosting your credit score doesn’t happen overnight. So, the sooner you take steps to improve your credit score the better.
Save for a Down Payment
According to the Department of Financial Protection & Innovation, the average down payment is 13%. However, if you put down less than 20%, you will have to pay private mortgage insurance until your equity in your home reaches 20% or higher. So cut the extra cost and save up with these down payment saving tips.
Want to learn more?
Visit our Home Mortgage Resource Center where you will find information on understanding your loan estimate and your closing disclosure, a glossary of housing terms, and more. As always, our mortgage lenders are committed to putting you at ease at every stage of the homebuying process. Contact one of our mortgage lenders and see for yourself!