If you are a first-time home buyer, then buying your first home is an exciting time, but it can also be stressful and you will have lots of questions:
- What can you afford?
- What type of mortgage should you get?
- And so many more.
This will most likely be the largest financial transaction you will make in your life time and it can be overwhelming, so here are some quick tips to make the home buying process go smoother.
The trick is to take it step by step and in the correct order.
- Take some time to think through the advantages and disadvantages of owning your own home compared to renting. Are you ready for the responsibilities of home ownership?
- Before you begin searching for a home — and also so you don’t end up being disappointed or wasting the time of a realtor — speak with an experienced mortgage broker. I can review your financial situation to determine how much you can afford and the maximum price that you should be considering.
- You may believe you have been pre-approved by your bank, but if there has been no documentation collected and your credit has not been checked, then that pre-qualification is really just a discussion. There is so much that can go wrong with just a pre-qualification. True pre-approvals are based on verified financial information and a credit check. If everything has been checked upfront then you should only need to be concerned about the lender approving the property you wish to purchase.
- A pre-approval can also speed up the process when you do find a home although there is no guarantee that the lender will accept the property but it is best to be prepared especially during a sellers’ market. It can also guarantee you a fixed mortgage rate for a certain period of time while you are looking for a home.
- Ensure that your credit is in good shape and you are maintaining your credit rating by making your loan and credit card payments on time. You might not have realized this but your cellphone payment record is now being reported on your credit report too so it is important to pay that on time each month.
- There are so many benefits to using a mortgage broker during the home buying process. We have access to many different lenders and can guide you through the process ensuring a greater chance of success starting will a pre-approval. We will show you all of your mortgage options through multiple lenders to help you choose a mortgage that is right for you.
If you would like some assistance getting started on your journey to home ownership please give me a call.
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.