Sunset Beach real estate preparing for a mortgage – Buying a home is the largest purchase many people will make in their lifetime. So when you decide you are ready to purchase your first home you want to make sure you truly are financially ready. Here are some ways you can prepare for taking on that first mortgage home loan.
Go Over Your Budget
Before you apply for a home loan you need to determine just how much you can actually afford to make on monthly loan payments. Look at your current budget the way it is take off any rent and utilities you are currently paying then add in a mortgage payment and utility cost in a new home. Don’t forget to make sure you are still allotting money to go into savings and an emergency or fix it fund because home repairs will be on your dime.
Check Your Credit Rating
The first things lenders do when someone applies for a home loan is pull their credit report. It is not uncommon for there to be mistakes or information that has been reported incorrectly on a credit report. It is a smart idea to check your score on a regular basis and know that everything is accurate. There have been many home buyers that apply for a loan only to be denied for pre-approval because of a charge that should have been reversed, something that was reported and never removed, someone else’s unpaid bill reported on your report and more. The goal of a clean and good report is to get approval at the best rate possible. Report any incorrect information on your report to the three major credit bureaus to be corrected.
Do Your Research
Don’t accept the first loan terms you have been offered. Look into your options and see if you can find a better rate through a different lender. Maybe you will find it a better option to make a slightly higher payment over a shorter loan period. REMEMBER: that applying for multiple loans over a longer amount of time will reflect on your credit report. Every time you apply for a loan your credit is checked so if you apply for loans within a span of 30 days those multiple credit checks will not affect your score.
Make a Large Down Payment
The best way to get those monthly payments down is to make the biggest down payment possible. Go over your budget and decide how much of your savings you can realistically afford to put down on a new home. The more you put down the lower the amount that needs to be financed.
Be Aware of Pre Payment Penalties
There are some loans out there that charge you extra for paying your loan off early make sure you read the fine print and steer clear of these loans if possible.
Knowing just how much you can afford and what options are out there will help you to make an informed decision so you can start shopping for that perfect first home. Ready to start looking at homes for sale in the Sunset Beach area? We can show you some great properties.
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