When it comes to the mortgage process, the more you are prepared, the better the experience you will have.
Every penny counts
You know what, it really does. In the months leading up to buying your home, work on improving your credit score. The better your credit score, the better the interest rate you will receive. The difference between .5 percent is thousands of dollars over 30 years. So, pay down credit card balances, correct any errors that may be on your credit reports, don’t open new credit lines, and maintain a clean payment history – in other words, pay your bills when they come in.
Preparedness is key
Make sure you have everything you need when meeting with your mortgage advisor about pre-approval. Here’s a checklist, but it’s always best to double check when you call to make the appointment: social security card, proof of employment, tax documents, bank account information, credit information, monthly expenses, and if you own a business you’ll need self-employment documents.
Once you’ve been preapproved for a mortgage and found the home you want, put in an offer as things move fairly quickly.
Down payment
Saving for a down payment is definitely advantageous, however, you also don’t want to deplete your savings. The best course of action is to save as much cash as possible for unexpected expenses – in other words, it’s always good to have a rainy day fund, especially when you’re a homeowner.
Work with a realtor
Don’t think that by going it alone you’ll save money. It could prove true for some, but in most cases, you need an expert to guide you through the process, especially when it comes to negotiating the price on a home. A realtor also is familiar with the ins and outs of home inspections and appraisals.
The search
Finding the right home for your individual needs takes time. You can expect a six-week time period between finding the right home and closing on the mortgage. So patience is key.
Those that educate and prepare themselves for the home buying process and take the process seriously have a better home buying experience. When you work with professionals that can help separate truth from myth you’ll be walking through the threshold of your new home in no time.
Contact one of our helpful lenders in New Berlin, Springfield, Modesto or Palmyra.