- Posted by: steve
- Category: mortgage facts
There are many factors to consider when you are applying for a home. Here are 4 mortgage facts to know before you borrow!
A home is for sure the biggest purchase of your life.
It’s like you are creating a base for yourself and your family. A place you see yourself spending the rest of your life in.
However, buying a home comes with a cost.
And this is exactly why we are here to give you 4 mortgage facts to know before your big investment.
If this is the first time you are applying for a house, some research will just leave you with so many questions that you will most likely feel lost and frustrated.
This is a long, sometimes, a tiring process that might make you want to give up. In addition, if you are a millennial, you are most likely hesitant to buy a home because you want to avoid mistakes previous generations have already made.
So, read our “4 Mortgage Facts to Know,” get your act together, and move on to the amazing house hunting process. This article will prepare you and preparation will only help you get your loan pre-approved.
1. Have a Budget in Mind
Many times, when people decide it is time for a loan, they, for some reason, go to the extremes. This is something you must avoid.
Decide how much money your house should cost and the monthly mortgage payment you can afford. Don’t forget to keep in mind additional costs such as insurance, property taxes, and maintenance fees.
Always have a budget and let your lender know about it.
2. Understand The Market
Do your research not only on your personal finances but also the region you live in and the current circumstances. There are variances from country to country, state to state, and region to region.
These variances work as key factors –especially in Florida, a place where many condo projects have gone bankrupt, and have made lenders make their standards stricter.
A professional lender who puts security first will examine your finances plus the building expenses and might even ask for an advance. If you feel that the region of your preference is risky, you might need to contact a real estate professional.
They will know which properties worth your attention.
3. Your Credit Score Matters
Your credit score is the most important factor to get approved for a loan. This is what will make lenders determine how much of a risk you may be to renege on the loan.
You have to make clear how much money you earn yearly, your employment status, your invested assets as well as what your expenses include. Previous loans, debts, and credit card payments are, of course, included.
Many might think that cooking the books might get you a loan. However, lenders were not born yesterday and they will verify everything once your loan process starts.
4. Keep Your Taxes in Order
Lenders need to feel safe when they are giving money to a potential borrower. The first thing they will ask for will most likely be a two years’ worth of your federal taxes. Also, in nearly every case, they will ask you to allow them to verify the data you will hand them with the IRS.
Even the slightest glitch in your taxes will probably make them hesitant and let you go home without a deal in your hands. Keep everything about your taxes in order and always be honest about them.
The Takeaway From Mortgage Facts To Know
If you were actually reading and paid some attention, you may have noticed something. All of the facts mentioned above have one thing in common: Honesty.
Either it is about being honest with yourself and realizing how realistic your goals are or just telling the truth to a third party, honesty here matters. Keep that in mind and you will come one step closer to getting yourself a great deal.
Whether you are ready to obtain a mortgage or not, you can always contact us for further clarification. Don’t miss the chance to talk to a real, trained human who can help.