Failure to prepare your home for the upcoming winter months can have dire consequences on your wallet, as well as pose a safety hazard for others. Even those in warmer climates will want to be
5 Mortgage Tips For FirstTime Home Buyers
Buying a house entails a lot of work. It requires a great deal of planning and preparation to ensure that all aspects are precisely what, where, and how they should be. If you are purchasing your first home you will likely need a mortgage. Before perusing online real estate listings and visiting open houses, you should know what your mortgage options are.
Prepare Your Financial Records
You will be expected to produce documents, these are usually x amount of years of tax returns, monthly bank statements, pay stubs, your driver’s license, and social security card. Your bank statements can be found on your bank’s website. Lenders need proof of income to verify the borrower’s financial stability. Any outstanding debts should also be reported, prior to obtaining pre-approval you may be asked to pay down certain obligations.
Use a Mortgage Calculator
If you have no clue as to how much your mortgage rates will cost, use an FHA mortgage calculator to put a firm number on it. The calculator can identify the lowest down payment and the highest FHA mortgage rate that is allowed when buying a property. It will, also, generate an estimate of your closing costs.
Consult a Mortgage Officer
Using a mortgage officer can help you identify any unknown and unresolved credit issues that could restrict you from getting approved for a mortgage. A good mortgage officer will be instrumental in guiding you as to what to focus your search on based on things like budget and your family size.
Settle Your Debt First
Wiping your slate clean is an all important step towards securing a mortgage for your house. Lenders will look at your debt-to-income ratio. A high ratio could raise a red flag from the bank’s viewpoint. It is always best to resolve any outstanding debt before you apply for a mortgage.
Develop Good Credit Practices
If you are in the practice of making late payments or less than satisfactory payments on your loans this can lower your credit score significantly. This can make the mortgage process more challenging and/or more expensive. Keep in mind that once an unpaid debt is sent to collections that it will take a long period of time for your credit score to recover from the adverse action.
Buying a home can be an exciting experience and a dream come true for many individuals and families. If you have no knowledge of how the process works, it can also be a financial landmine! Apply the five tips above to simplify home-buying and make the correct choices along the way.
Sam Lepore is a Realtor with Keller Williams in Moorestown, NJ. Call him today at 856.297.6827 ....