Applying for a mortgage can be overwhelming. There are so many available mortgage types and down payment financing options, but how do you know which choice is best for your home buying needs? When you take the time to sit down with a mortgage specialist or research your options you’ll find that applying for a mortgage is actually rather straightforward. In fact, sometimes the most difficult part is recognizing where to begin the process! Here are some helpful tips to get you started.
- Don’t spend your life savings: Your home should be your largest asset, but it is important to remember that you will have other expenses while you own a home. For example, you will need insurance, money for living expenses, and money for maintenance. When you select your mortgage type and down payment financing option, keep these expenses in mind and pick a rate that will allow you to maintain both your savings and your mortgage payments!
- Make sure your credit report is correct: As you know, you need to have a good credit score in order for your mortgage application to be accepted. Your credit score is a very important factor in the decision making process; however, the Federal Trade Commission found that 5% of consumers had one or more errors on their report. Do yourself a favor and make sure that you are not a part of that 5% when you apply for a mortgage; review your credit report and submit any errors to the credit bureau as soon as you find them.
- Choose the loan that works best for you: There are a plethora of options to choose from when you’re looking for a new mortgage or looking to refinance your current mortgage—and you should examine all of them closely to figure out what works best for you. Every financial situation is different, and as a result you should not choose what your parents or best friend chose. Focus on the loan option that most closely fits with your current life goals and finances.
Of course, these tips just scratch the surface of mortgage applications. For more tips and tricks, reach out to one of our mortgage specialists today—we can ensure that you will get the best mortgage advice tailored to your individual needs.