Getting ready to purchaser you first or next home? Here are 10 Must Do Steps.
- Check your credit report and score: Your credit score is a critical factor in determining your eligibility for a mortgage and the interest rate you’ll pay. Check your credit report for errors and take steps to improve your score if needed.
- Save for a down payment: Most lenders require a down payment of at least 3-5% of the purchase price. The more you can save, the better off you’ll be in terms of both loan eligibility and interest rates.
- Get pre-approved: Getting pre-approved for a mortgage gives you a clear idea of how much you can afford to borrow and shows sellers that you’re a serious buyer. Work with a trusted mortgage professional to get pre-approved.
- Determine your budget: Consider not just the monthly mortgage payment, but also other expenses such as property taxes, insurance, and maintenance costs when determining your budget.
- Avoid major purchases: Avoid making any major purchases, such as buying a car, before applying for a mortgage. These purchases can affect your credit score and debt-to-income ratio, which can impact your eligibility for a loan.
- Don’t change jobs: Lenders prefer borrowers who have a stable employment history. Avoid changing jobs during the mortgage application process if possible.
- Gather financial documents: Lenders will require documentation of your income, assets, and debts. Be prepared to provide tax returns, bank statements, and other financial documents.
- Shop around for rates: Rates and fees can vary widely between lenders, so it’s important to shop around to find the best deal.
- Consider mortgage types: There are different types of mortgages available, such as fixed-rate and adjustable-rate mortgages. Consider your financial goals and the length of time you plan to stay in the home when choosing a mortgage.
- Work with a trusted professional: The mortgage application process can be complex and confusing. The best mortgage professionals will simplify the process and guide you through the steps.
By following these ten steps, you’ll be well-prepared to apply for a mortgage and secure the financing you need to purchase your dream home. The Carmen Miller Group at EXP Realty is a respected local real estate team that can connect you with reputable mortgage professionals. Contact them at www.carolinahomesearch.com or 803 828-7838 to learn more and get started on your home search.