For first-time buyers, searching for and purchasing a home can be intimidating and leave you feeling lost. Some may even start piecing parts of the mortgage process together and hope for the best.
Thankfully Mortgage Advisor provides expert advice on purchasing a home - from managing your finances to taking care of closing costs.
Take a look at these dos and don’ts to be aware of when you start your home search and prepare for a mortgage.
Some may start searching for a home before they get pre-approved for a mortgage - leaving them with no knowledge of how much home they can even afford. Before you start your search, always get pre-approved for a mortgage. Once you know what you can afford, you can make the most educated, and competitive offer.
Working with the pros
Don’t think you’re in this alone! There are many home buying experts available to help you through the entire home buying process - from simply getting your finances together, to paperwork and of course finding your dream home.
Understanding your credit
In order to be eligible for a home mortgage, you need to ensure your credit is in the best shape possible. One of your first steps in understanding your credit is to get a copy of your credit score from all three credit bureaus. Next, be sure to not open any additional lines of credit while trying to get pre-approved for a home mortgage, then talk to a pro to figure out how to get your credit in impeccable shape.
Along with not opening any lines of credit comes with the need to start saving. Not only do you need a down payment on your home, but you may also have added fees with closing costs, movers, new furniture and the like.
Employment and income
A huge factor in purchasing a home is your length of employment and income. Try to not make any changes within this realm - it could affect the final approval of your loan. The only exception to this is getting a pay raise or a promotion.
Your checking and savings account
Your future mortgage lenders take a look at where your money is coming from - so make sure you have a paper trail they can track. Try to avoid large cash deposits or transfers into your account.
Before you panic for not knowing a piece of information, relax! The professionals are available to answer any questions you may have, so feel free to ask them anything.