While your loan officer will be there to guide you through the process and answer your questions, it’s important for you to have a general understanding so you are not going into this process blind.
Review your Credit
If you intend to obtain a mortgage loan you will want to have the best credit score you can in order to qualify for the lowest rates. Establish good credit habits by using credit cards responsibly and keep up with your monthly payments, making sure to pay them on time. Also, make sure to fix any errors on your credit report to help increase your score.
Understand the Costs
When shopping for a home it’s important to understand the true costs of a mortgage beyond the principal and interest payment. The first hurdle you may have to overcome is saving for the down payment; you will also have to cover closing costs, discount points, and other fees that may not be financed with the mortgage. The true cost of homeownership can also include insurance, taxes, maintenance costs, etc.
You should never start looking for a home unless you know how much you can afford. A preapproval letter from a lender will help set your shopping budget as well as give you negotiating power with sellers.
Work with Professionals
Working with a knowledgeable mortgage loan officer and a real estate agent will ease any of your home buying worries. The mortgage and home buying process can be seamless with experts by your side guiding you through each step.