5 Things To Do Before House Hunting
Are you buying a home for the first time? It is indeed one of the biggest purchases a person makes in a lifetime. Once you decide to buy a home, resisting yourself from internet surfing for the best options available is quite difficult. Everything starts feeling amazing as you check out the various home options in your budget. It’s great to explore your future home; however, you must stay informed. The internet is full of real estate options. Before beginning your house hunt, make sure you are all set to start the overall home buying process. It may feel complicated in the beginning; however, it’s good for you and your home-buying plans. Drew Mortgage Associates are one of the leading mortgage lenders in Massachusetts. Our mortgage associates have listed out the 5 things you must do before you begin searching for an ideal home.
5 Things To Do Before House Hunting
- Keep a good Credit Score
We always emphasize the importance of keeping a good credit score for hassle-free mortgage loan approvals. A credit score indicates your financial trustworthiness. A poor credit score can result in higher interest rates and big EMI payments. What makes your credit score poor? Factors such as missing a credit card or loan payment, using a credit card to the maximum capacity, or credit report errors can be the hurdle between you and the mortgage approval. Keep your credit score good, and try to pay your maximum debts before applying for the mortgage. It will be of great help to you!
- Determine Your Budget
This may sound obvious to you as a home buyer. However, there is a lot more than the estimated property rate. Analyze your income, check your expenses, savings, existing debts, and determine how much you can spend on a home. Most homebuyers apply for mortgage loans. This gives a sense of relief and breakdown of the total amount into small monthly payments. As you begin your search for an ideal home, you will discover that there are possibilities of expenditure more than the expected amount and something that may or may not get covered in the mortgage plan. So, think wisely and check your options based on your budget.
- Save Enough For Down Payment
Although most mortgage lenders in Massachusetts give an option of mortgage plans where the down payment requirement is as low as 3%, and the remaining amount gets funded, it is ideal for homebuyers to save enough funds to pay around 20% of the total property amount as the down payment. It is recommended to keep your funds ready before you begin the house hunt. This will make it easier for you to negotiate on the property amount and seal the deal real quick. Plus, your mortgage burden becomes less when a big amount is already paid during the purchase. Think and plan wisely!
- Get Mortgage Pre-approval
Have you ever thought- what if the home you want to buy doesn’t fit your budget – either by saving or mortgage loan? Well, this is the most common problem that homebuyers face. When you get your mortgage pre-approved, it simply means that your mortgage lenders check your eligibility and approve a loan for a specific amount. This is crucial when your aim of home buying is majorly dependent on the loan. Pre-approval of a loan gives you a clear idea of the loan and aids in better financial planning. You can look for home options under your budget. It also makes the loan process fast as the mortgage lender has already checked your eligibility and is ready to sanction the loan as soon as possible.
- Explore Related Expenses
You are all excited to begin your house hunt, got your mortgage approval, but there’s a lot more. There are expenses such as hiring a real estate agent, home inspector, home appraiser, mortgage consultant, notary, legal paperwork, home repair, shifting, and more. People often forget to take these expenses into consideration while planning their finances for home buying. There are mortgage options where you can apply for refinancing. However, most of these listed expenses can be troublesome if not financially planned at the initial stage.
Still Not Prepared?
We feel you! House Hunting is fun, but choosing one out of many wonderful options is tough. With this ‘5 things to do before the house hunting’ checklist, Drew Mortgage Associates wants to keep you prepared for your home buying journey in advance. We are leading mortgage lenders in Massachusetts and can help you enjoy the goodness of pre-approved mortgage loans and a hassle-free home buying process.