The anticipation of home ownership is exciting, but you don’t want to let your dream home slip away because of unforeseen financial circumstances. To purchase the home, you’ll likely need a mortgage, and applying for one requires more than just a signature. Follow these mortgage tips to help get the most out of your investment. Windsor Agent – Danielle Lunetta
Do Your Credit Report Homework
Attain your credit report well in advance before applying for your mortgage. Checking for errors and other items which need addressing can help you improve your credit score. Your ability to get a desired mortgage rate largely depends on the information contained in your credit report.
Prepare the necessary documents in advance. This will save you time and ensure a smooth application process. Depending on the type of mortgage you’re applying for and your employment situation, various documents are needed. Your mortgage lender will need:
●Documents required based on type of mortgage transaction (Standard Purchase/
●Documents required if employed by a company or self-employed
Get the Stamp of Pre-approval
Getting pre-approved for a mortgage helps you understand how much you can borrow before going through the mortgage application process. Think of it like a mortgage estimate that:
● Is cost-free
● Saves you time by eliminating unrealistically priced homes
● Allows you to make an immediate offer when you find a home
● Puts you in a better position for negotiating with the seller
● Locks in an interest rate for a period of time, which could save you money if rates increase during the search for your dream home
Consider the Future
Your mortgage should be planned in accordance with your future. Your plans may change, but the goal is to reduce financial risks. Ask yourself the following questions:
● How long do I plan on staying in this house?
● Can I afford to wait longer and save for a larger down payment?
● How high is my risk tolerance?
It’s important to be well informed prior to applying for a mortgage. Understanding the options and procedures involved with buying real estate will be hugely beneficial to your plans and finances. Your mortgage is a long-term commitment, and like all big decisions, it needs to be researched and well thought out ahead of time.