By: Ashley Elvington
Are you searching for your very own home as a first time buyer? Fret not – below are some mortgage tips to assist you with your upcoming housing purchase.
1. Compare and contrast the prices of the homes in question – this will help you calculate how much your monthly payment will be
2. Once you have this amount, include taxes and homeowner’s insurance; tax amounts can be located on the property’s appraiser’s website and if you’re unsure as to what insurance will cost, contact an insurance agent in the area who can assist you
3. Calculate your total amount of closing costs (this includes lender, title, homeowners’ association, and settlement fees, taxes, insurance, etc.)
4. Determine if this costs fits well into your budget and make sure your credit is reputable
5. Reach out to a realtor on whether the housing costs in your area will rise or fall with time
6. Thoroughly consider any repairs or replacements needed. Home repairs and/or appliance repairs/replacements can be rather costly. Keep this in mind when determining whether to buy a particular home or continue the search
7. Have all documents needed by the lender ready for their viewing – they may need to see pay stubs, bank statements, tax forms/returns, current loan statements, credit reports, etc.
8. Seek pre-approval for mortgage from your local bank or credit union – applying to more than one institution may greatly increase your chances of being approved for a loan that caters to your financial budget. If you are unsuccessful with either lender, you may be able to get a loan through the Federal Housing Administration.