Here are 5 things to know about getting a mortgage loan. Buying a house is an exciting and terrifying time for anyone. Either you are a first time buyer or an experienced buyer, we make decisions on how much can you shell out depending on what we earn or how much you can borrow from a lender or a mortgage loan company.
Your credit score and its integrity.
The most important thing to know before getting a mortgage loan approved is your credit score. All mortgage companies are in extreme caution in approving a loan nowadays. The higher your credit score, the less interest you pay. You are also entitled to one free report from the three major credit agencies in 12 months.
How much can you afford every month?
Lenders really depend their approval on your payment history as well depending on how stable your income is. This is an assurance to them if you can really pay on time; therefore your mortgage loan becomes easier.
Hire a professional!
Your broker oversees everything during the transaction, and a great broker should make sure that it goes as smoothly as possible. This is what they are here for and they are trained to do. Always remember that your real estate broker or real estate agent represents you in buying or selling your home. You always have the option to decline and make decisions whenever necessary.
Your dream house.
If you’re taking the risk of borrowing money and paying it for years, it should be worth it. You better be motivated to work and pay for the house you have pictured your life in. This is also another way of getting a fixed time frame on paying your mortgage if you plan to live in the property for more than 5 years.
A down – payment.
If you have extra cash hidden under a rock for the purpose of investing a home, it is wise to initiate a down-payment to get started. This is will show the mortgage lenders your good faith in purchasing the property desired.
Dear first time buyers:
If you are a first time buyer, please pay close attention. You may qualify for a mortgage of one of a kind. Make sure you are well oriented of the processes on getting a loan. The best person to talk about this is your broker and your lawyer at the same time. Your broker has the right knowledge whether or not you are making a good decision. There is nothing wrong involving your lawyer when it comes to transactions that involves contracts especially in real estate. Better safe than sorry!
Do your research.
Find time to educate yourself and research about mortgage lenders or mortgage loan companies who will understand your goals. Part of your research should be determining how much house you can afford by calculating it with your monthly income and taxes. Ask questions, do your homework. Always prepare for one to the biggest decisions you are gonna make in your life.