We all get thrilled at the idea of getting new things – shoes, clothes, big-screen TVs, Smartphones among others.
But, the excitement is doubled when you are getting your own home – yes, a house you own. However, unless you can afford to pay for your home entirely upfront, finding the right home will not be your only battle. You would likely have to get a mortgage.
Unfortunately, many people get thrilled at the idea of being “homeowners” that they don’t really look into getting the home mortgage that fits their income. But, since you are reading this, you want your home buying to be a success. Here are 5 tips for getting the perfect mortgage that fits your income.
1. Evaluate Yourself and Your Capabilities
This is the first thing you should do before getting a home mortgage. Sit down and add up every income you generate monthly, the expenses, and know the amount you can afford to spare monthly. A budget can’t be made if you don’t know how much you can spend. Once you have evaluated yourself and known your capabilities, then you can know what to look for.
2. Look Into The Market for Lenders
Once you know what you are looking for, then it is time to look into the market. Look for financial institutions or home lenders around you with loan options that suit you and make research about them (you can use Collected.Reviews to read their reviews and ask questions) before you ask for a loan.
Don’t accept the very first mortgage that you get till you are sure it is what you want. Take your time and explore all your options, look into other home lenders and loan options till you are sure you are getting a good deal.
3. Don’t Overextend Yourself
You know what you can afford and the mortgage you can qualify for but that does not necessarily mean you have to max out of your budget. Choose something that fits into your bank standards and mortgage interests that is within the range of your budget that will not leave you under a lot of pressure at the end. For instance, if you have a credit card with a $50,000 limit, does that mean you should spend the whole $50, 000 on purchases?
4. Get Your Documentation In Order
When you apply for a mortgage loan, some documents will be required. Getting the necessary documents before walking into the lender’s office is not a totally bad idea.
These are some of the documents you should have ready:
- Recent tax returns
- Social Security card
- Driver’s license
- Bank and brokerage statements
- Pay stubs
- Marriage license (if applicable)
- Credit report
- Proof of current property owned
- Contact numbers for the HR department where you are employed.
5. Get a Mortgage Pre-approval
While many will not see this as an important step, it actually is. Getting a mortgage pre-approval letter before you start looking into houses, shows that your loan is likely to close. This makes you appear like a serious buyer to the seller and not likely to run into trouble when obtaining financing. Plus, it saves time to secure your home.
Now that you have known the tips for getting the home mortgage that fits your income, you are unlikely to make bad mortgage decisions. Have a successful home buying!
