Doing your homework when it comes to getting a mortgage is the first step to buying a new home.
A large part of the success of being able to following through with a mortgage is the ability to know how it fits into your budget, and whether you will be able to keep it up for the next 30 years or so.
Keeping that in mind, here are 3 steps to getting a mortgage:
#1: Take a look at your finances
If you can afford to buy a home, find out how much you can spend by taking into consideration your income and expenses, both how much you make now and will later. Of course, this is so that you can calculate how much mortgage you can easily pay month after month. Apart from this, also think about costs such as taxes, insurance, homeowner association payments among others as well.
#2: Look for a loan
When you are sure that you can look for a mortgage loan, then there are two types that you can benefit from – direct lenders and mortgage brokers.
Both work differently where the former make the final decisions on your loan application while the latter work as an intermediary, thanks to a number of lenders that they are in business with. In some cases, choosing a broker is a good idea as you might have special needs. However, you might have to take into consideration other loans and broker-related costs as well.
#3: Applying for the loan
The third and final step is to apply for the loan with the necessary documentation and credit score. Be prepared to answer questions related to your assets, jon tenure, income and liabilities. Also, the lender will run a credit check and hire a real estate to determine the price of the home that you’re interested so as to check if the value of the home is worth the mortgage amount you’ve requested for.