May 2nd, 2018 7:07 AM by Jackie A. Graves, President
Buying a house is a major financial commitment. You want to be
certain you’re getting the best mortgage rate and terms, and that you will be
able to afford your mortgage payment now and into the future. Unfortunately,
some people don’t really shop around or look at their mortgage options when
buying a home. Someone who may spend hours researching and comparing prices for
technology or a new car will take the first loan offer they receive.
If you’re in the market for a new house, GayRealEstate.com has provided a few
tips that will help you obtain the best mortgage possible.
Save Money to Make a Down Payment
If you can make a good-sized down payment, you won’t have to
worry about financing as much. That may help you get a better rate so your
monthly payment isn’t as much. While it’s tempting to make only the minimum
down payment and use the rest of the money for other things, remember that the
more you borrow, the more you’ll pay in interest. You’ll save money by making a
larger down payment in the long run. Plus, you’ll have lower monthly payments,
so you’ll have extra money to spend each month.
Look at the Right Properties
Just because you can afford a larger house doesn’t necessarily mean that’s the
right house for you. If it’s just you and your spouse, a four-bedroom home may
be too much. On the other hand, if you have several children or need space for
a home office, it might be the perfect size. Don’t buy more house than you need
just because you can. Otherwise, you may end up paying for space that you don’t
actually use, but still have to keep clean and maintain.
This also applies to the extras
you might find in a house. If you don’t really need a swimming pool, for
example, don’t buy a house with one. Take the time to determine what you truly
need in your future home before you start looking at houses.
Know Your Budget
Do you know how much you can really afford to spend every month? If you don’t,
you need to figure it out before you start looking at mortgages. First, look at
your income. Banks generally won’t offer you a loan if your expenses are more
than about 30% of your overall income. There are a number of online calculators
that will help you determine what percentage your monthly expenses are of your
Remember to take your down
payment into consideration, too. Then look at all of your debt and see if you
can eliminate some of that. For example, you may need to spend a little bit of
your down payment on eliminating a credit card if it helps lower your overall
Know Your Options
You also need to know what kind of loans you qualify for. Many people go
straight to their bank and don’t even look at things such as FHA loans or VA
mortgages. These loans often have very low interest rates, and some don’t
require much of a down payment at all. If you qualify, these loans are often
the better way to go than getting a loan from a traditional lender.
Compare and Contrast
Once you know if you qualify for any of these mortgages, you can compare and
contrast them with traditional loans. Always be sure to get quotes from a few
different mortgage lenders. While getting recommendations from your gay real
estate agent is a great place to start, also take the time to do your own
research. Once you have that information, you can determine which mortgage will
best serve you in the long run.
When you’ve chosen a lender, be sure to get pre-qualified. This ensures the
seller you’re qualified to purchase their house. It also helps you know what
you can afford. If you’re pre-qualified for a $250,000.00 mortgage, you
shouldn’t be looking at $350,000.00 homes – it’s a waste of your time and your
agent. It’s always better to know what your limits are before you spend a lot
of time looking at homes you simply can’t afford.
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