The Process: Getting Started
The first step will be getting your credit report. By law, you are entitled to one free copy of your credit report per year. Annualcreditreport.com is a sound place to start. Scores range from 300 to 850, higher scores yield substantially greater loans. Assess the report for any errors. If there are errors dispute them. This could help your overall credit report.
Finding out your specific price range can be relatively simple. Whether deciding to talk to an experienced Real Estate Agent, or using an online mortgage calculator. The tools are there to guide you. However, you still need to factor in your down payment, closing cost, appraisal fee, etc.
Find a Lender
Now that you have done the math, it is time to find a lender. There are many publications and sources to start your hunt. Be that as it may, it is in your best interests to shop around. It is important to find a lender who can pre-approve you. This allows you to know almost exactly the size of the loan you qualify for.
The Right Agent: The Right Home
Finding an experienced Real Estate Agent, who is familiar with the area, is key. Start looking for your home! Ask yourself, “how many bedrooms or bathrooms do I need? Do I need a big backyard? How much kitchen space or counter space do I need?” Express these needs and wants to your Real Estate Agent. Never be afraid to tell your Real Estate Agent what you do not want either. The more knowledge they have the easier it will be to pinpoint the perfect home.
Getting Close: Mortgage Time
Which mortgage is right for you? Fixed, adjustable, or intrest only are the primary types of mortgages. Your mortgage banker, or mortgage broker, should be able to help you decide which one best fits your situation.
- Adjustable rate mortgages (ARMs) are short-term mortgages that offer an interest rate that is fixed for a period of around 6 to 7 years. After that, the rate fluctuates depending on the market.
- Fixed-rate mortgages are more traditional and offer a fixed interest rate, and fixed monthly payment. These take normally around 15 to 30 years to pay off.
- Interest-only payment. What this means is that for a specific amount of time during the loan term, you are allowed to pay just interest portion of your payment. You can still pay on principal if you desire to, but are not required to.
Getting a home inspection is very important. Just because it is a new house, does not mean that it is completely favorable. A home inspection is affordable and necessary. What you are paying for is peace of mind, knowing that everything is up to code and in proper quality. Make sure all the issues are addressed. Talk to your mortgage banker to fully understand all fees and final closing cost.
At Bob Capes Property Management & Real Estate Sales, we wish you well in your endeavors. We would love to be apart of this journey, and to help open the door to your new home! Best of luck, and happy hunting!