7 Steps to Getting Ready to Shop for a Mortgage
One of the most exciting periods in a borrower’s life is purchasing a home! Buying a home is also one of the most significant financial decisions you will make in your life, but it is just as crucial to decide which mortgage to use to finance your new house. Make sure to do your research and take your time to find the best loan for you.
The main factors that you should be focusing on is deciding how much you want to spend on a home, determining when the right time is for you to buy a new home, and gathering your application paperwork. Set yourself up for success by taking the time to prepare before you begin looking for a property and a mortgage. Check your credit, examine your finances, set your home-price budget, and more with our 7 steps approach below.
Check Your Credit
Lenders analyze your credit scores and information from your credit report to assess if you qualify for a loan and what interest rate you should be offered.
Check your personal credit reports early on to avoid unpleasant shocks and to remedy any errors. To get the most of our budgeting and planning tools, you will also need a thorough understanding of your credit ratings.
Examine Your Spending Habits
Take a thorough look at your existing expenses before you start home shopping. Whether you are currently renting or own a home, buying a new home involves taking on extra expenses for most people.
To determine how much you can afford to spend on a new home, you must first determine how much you are already spending.
Budget For Upcoming or Changed Expenses
You can create a forward-looking budget for how you will spend your money once you have purchased a new home now that you have a clear picture of your existing spending habits. This allows you to set a monthly mortgage payment goal.
Decide on a Down Payment and How Much You Want to Spend on a Home
Now that you know how much you can comfortably spend monthly, it is time to look at your funds and figure out how much you can put down on a home.
Think About Whether It Is the Right Time for You to Buy
Purchasing a home is a significant financial investment. Consider whether now is the perfect time to buy after reviewing your finances and estimating how much you can afford to pay for a home.
Assemble a Team of Advisors
Purchasing a home and selecting a mortgage can be challenging. It is beneficial to have somebody with whom you can discuss your concerns. People do best when they enlist the support of a group of trustworthy advisors rather than a single person to guide them through the process.
Friends, relatives, and coworkers can all help you with this process, and they do not have to be professionals.
Create a Loan Application Packet
In the ‘explore loan options’ phase, you’ll meet with a number of lenders to get to know them. You will have to provide some financial information to these lenders. It is important to start gathering this information now so you will have it at your fingers when you need it.
Prime Choice Funding is here for you. If you are planning to purchase a new home or refinance your existing home, we can help with your homeownership goals, call us at (877) 787-7463 or contact us here.