You’ve scrimped and saved for a down payment. You’ve researched and found the neighborhood you want to live in. You’ve looked at various styles of houses and know what you want to fit you and your family. You’ve been vigorously hitting the realty websites and publications, searching for the perfect home. You’re ready to buy a house now, right? Not so fast. Here are some tips on important details to iron out ahead of time, so you are prepared to find the right mortgage lender for you.
Know Your Finances
This may seem like a no-brainer but it’s a step that many potential buyers overlook. Maybe you have your down payment saved up, but do you know your credit score? Do you have any credit issues that may still be hanging on that you’ve forgotten about? If you’re buying a house jointly with another, do they have any credit issues that might interfere with the mortgage? Have you researched competitive rates, so you know what to expect? There are many important questions that the average consumer may not think of. That’s why it’s important to consult with a professional mortgage and financing company like Sun West Mortgage so they can help you ask the right questions.
Get a Pre-Approved Mortgage
Depending on the market, home sellers are often picky about who they sell to. They want to know potential buyers have done their due diligence. They want assurance that potential buyers can reasonably be expected to be able to get a mortgage. When a seller accepts an offer on the house they’re selling, they must take it off the market. Many sellers won’t want to do this if a buyer’s finances are questionable. The easiest way to avoid this concern is to get your mortgage pre-approved and have a pre-approval letter that you can show to the seller. This will greatly increase the odds of a buyer accepting your offer on their house. Just be careful to disclose to your lender if your finances change for any reason to avoid potential glitches in your mortgage.
Pay Attention To Extra Costs
Another area new home buyers often forget to factor when planning their house purchase is additional costs to owning a home. Have you researched property taxes for the area you want to buy? Will you have to secure Private Mortgage Insurance (PMI), which is generally required if you will owe more than 80 percent of the value of the home? Have you researched homeowner insurance costs for the house you want to buy? As you consider these additional costs, talking to a professional such as Sun West Mortgage can be very valuable.
Research Cost of Living Changes
Another area people sometimes forget to research when buying a new home is the cost of living. If you’re moving from a 2-bedroom apartment to a 4-bedroom house, chances are good that your utilities (electricity, garbage, water, sewage) are going to cost more. Are you moving to a more affluent neighborhood, or perhaps even a new state? The cost of living often differs depending on where you live. While groceries might have cost you $200 a month in your old neighborhood, it’s possible they could cost you $250 in your new location. Though a small difference, these cost of living changes can impact your ability to afford that monthly mortgage.
Everyone wants the opportunity to own their own house; to purchase their dream home. As you embark on this journey, be sure to do your research into every aspect of the home-buying process. By doing the work ahead of time, you will be prepared and have what you need to make your dream come true.