What is the correct mortgage amount for me?
Figure out how much mortgage you can afford and save a lot of time and aggravation. Generally, a lender will want your monthly mortgage payment to total no more than 33% of your monthly gross income. Also you need to consider current interest rates. The lower the interest rate, the more expensive home you’ll be able to afford.
First time homebuyers might feel better to know that they’re not the only ones who feel confused about the home buying process. Nearly all home buyers feel the same way, even if they’ve bought a house in the past, because it’s easy to forget the home buying steps you took to get there, once the process is behind you.
Knowledge is a Good Thing
Before you begin, get educated about the home buying customs where you live. Relatives or friends who live in another state might have some good general advice for you, but chances are the process is very different in their area, so avoid the mistake of relying solely on their advice to make important decisions.
The specific way you progress through a real estate transaction varies depending on the real estate laws and customs where you live, but there are many steps that are standard, even though they might not be accomplished in the same order in every location.
You’ll feel more confident about your home buying journey when you understand what is required of you and every other person who is involved in the transaction.
Know Your Finances
Your credit reports are an ongoing look at how you manage your finances. You must know exactly what your credit reports say about your financial history before you apply for a home loan. Why? Because they play an important role in the mortgage approval process and in determining the interest rate and other loan terms that a lender offers you.
If you haven’t looked at your credit reports, you might be surprised at their contents, because errors are common.
Finding the right loan and lender is crucial to your home buying success. That’s where we can assist you. Do you know how much house you can afford? Probably not, unless you’ve talked with one of our Home Loan Experts. Fill out our online application and we can have one of our experts get you pre-approved. When you know your interest rate and know your budget you can make an educated decision.
Buying a house isn’t as difficult as you might think, even if you’re short on funds, but the process will go a lot smoother if you get familiar with your real estate market and narrow down your wants and needs before you start looking at homes.
Start today by filling out the application. A Home Loan Expert will contact you and get the ball rolling. Buying your first house should not be intimidating.