Homebuying Process: What Should You Know?
Ask people, ‘ What’s their most expensive and biggest purchase so far?’ We’re sure the maximum answer you get would be a ‘Home.’ Indeed, buying a home is an expensive and long-term commitment affair. However, hurdles are all worth it when you finally get to relax on a comfy couch in your home. Is homebuying on your mind too? Here are a few things that you must check before buying your first time.
Trust us; the journey of buying a home successfully begins with understanding what your budget is. The affordability of a home is very crucial for long-term financial balance. It is ideal for keeping your credit score in check. For those who don’t know much about Credit Score, basically, it is a number that shows a person’s creditworthiness. This score is based on total debt levels, credit history, open accounts, repayment history, and other related factors. The higher the score, the better for home buyers. It helps mortgage lenders in Massachusetts and anywhere to evaluate the monetary risks with you.
Mortgage applicants with low credit scores often end up paying higher interest on the borrowed mortgage loan. Make sure you check your Credit Score before jumping into the hunt for your dream home. People often find their ideal home, but their mortgage applications get rejected due to poor credit scores. Don’t let your credit score shatter your dreams. You can discuss it with Drew Mortgage Associates, one of the leading Massachusetts Mortgage Companies. We can evaluate your credit score and prequalify you for a homebuying mortgage loan.
Are you wondering how it is done? Well, prequalifying for a mortgage essentially means that mortgage experts evaluate your income, assets, and debts. In general, the biggest question is to cross the line between what you qualify for vs. what you want to be eligible for. There are many mortgage options available to homebuyers. Prequalifying gives you a clear picture of your mortgage capacity. This further helps to narrow down to homes under budget. Generally, the ratio debt to income ratio (including all your debts + mortgage) should not exceed more than half of your income. The percentage of this ratio varies from person to person, depending on the income & debts.
It is always advisable to connect to mortgage lenders before you step into the real estate market and begin your search. For that matter, not just mortgage, a home buyer needs to be prepared from all angles to buy a home. Understanding home buying is a long-term commitment of finances and efforts is very important. There’s no supermarket that can get you a home in a day; trust us; there’s none. In some places, the process may be fast; in some, it could be as slow as a tortoise. Paperwork can be a stressful process. Hence, mental preparation and time and financial readiness are things you need to focus on.
Another important aspect of home buying- Location is something you must check before buying. Needless to say, every location in the city or suburbs is likely to come with its own sets of pros and cons. Once you prequalify for the mortgage, your picture gets a bit clear on the location that is under your budget. Begin your search for the ideal home in those locations only. This will save you time, money, and effort. If the location options are not desirable, consider waiting for more time and building your solid financial profile. We always say- Home buying decisions taken in a hurry are not fruitful always. Take your time, do research, and then opt for the process. Decisions taken with a peaceful mind are the best ones! All the best with your home buying journey!
Drew Mortgage is the best mortgage company to take the first step towards your dream home. Our qualified mortgage associates are always here to help. Do you want to start your home buying journey with a prequalified mortgage by your side? We can help! Connect to our associates today!