Are You Ready to Find Your Perfect Home?

It’s time to begin the search for your perfect home! Start by becoming well-versed in the language of mortgage lending by brushing up with this article. It goes over the ten terms and definitions you should know before entering the wonderful world of home ownership.

Now that we’ve covered basic mortgage language, let’s go over some questions you should consider before determining if it is time to jump into your home search.

Does the math add up?

When deciding to become a homeowner, it is important to note that your associated costs will not only consist of your down payment and monthly payments. There are many hidden costs to account for when owning a home. Closing costs include application and origination fees, insurance, home inspection, property tax, appraisal fees, etc. You must also consider moving expenses, Home Owner Association fees if applicable, the cost of furnishing your new home, and more.

Resources like local insurance agents’ and property assessors’ websites can prove very helpful during this process. They can aid in the process of deciding what neighborhood would be ideal for your personal and financial needs. Mapping out your foreseeable costs and consulting with your lending officer and other resources will be essential to staying true to your budget. It’s imperative to initially budget for what you can afford to spend on a house while accounting for the rest of your life’s planned and unplanned expenses.

Are you confident in your credit score?

A strong credit score is important when applying for a mortgage. Monitoring your credit report and FICO score is crucial to being well-prepared to find the best mortgage possible. If you are looking for a larger loan, you will need a strong credit score. The stronger your credit score, the better rate your lender will offer.

Resources like your annual credit report and CreditKarma, a free online service that provides frequent, updated credit score estimates, can be vital tools for maintaining strong credit health. If you locate any errors on your report, be sure to contact the appropriate credit-reporting bureau (Experian, Equifax, or TransUnion) to resolve them.

Are you making use of your available resources?

Be proactive and take advantage of every resource you have access to! Discuss your goals, financial situation, and mortgage options with an experienced loan officer during a free consultation to help make the smartest decision for your budget.

Your mortgage loan officer isn’t a robot, they want what’s best for you! Don’t be afraid to clarify or ask questions throughout the process- it’s what they’re there for.

Prior to beginning your home search, ask how you can get pre-qualified. Visit our easy-to-use lending site, MortgageTouch, to utilize one of our helpful calculating tools like “Rent vs. Own” or the “Payment Amortization Calculator” to give you a better idea of what you are looking for.

Prepping for a home loan can seem daunting but by equipping yourself with an experienced loan officer, a strong credit score, and detailed and realistic budget guidelines, you will easily pave your way to success. Visit MortgageTouch to explore our catalog of local mortgage specialists to help jumpstart your search and begin your application online!

This content does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.