Buying a new house can be a little overwhelming, especially when it comes time to actually pay for it. You don’t have to feel your way blindly through the process of securing a mortgage and purchasing your new home. Here are a few tips to guide you through this part of one of the biggest decisions you’ll ever make…
* Get prequalified - A prequalification letter from your lender helps you know your budgetary limitations, provides you with negotiation power, and makes the process move more quickly once you find your dream home.
* Be prepared – Be sure you have proof of income and employment before you start the application process. Understand the basics of a mortgage such as APR, interest rate, and different loan types. Doing your homework ahead of time will help you make the best decisions during the process.
* Need vs. want – There’s going to be a big difference between what you WANT in a new house and what you NEED. You probably won’t be able to afford what you want, so decide in advance what you must have in a new home and what you’re willing to compromise on in order to stay within your budget.
* Run the numbers – Make use of a mortgage calculator to get an idea of how much your payment might be. Don’t forget to factor in your down-payment and the taxes on the home you are looking to purchase.
Gain more in-depth information about the ins-and-outs of obtaining a home mortgage from our friends at Coldwell Banker Heritage Realtors and PrimeLending Dayton.