Buying a home is something you probably have to do at some point in your life. If you have the money to pay in cash for your home, consider yourself lucky, if not, you need to ask for a home mortgage. There are a few things you need to know if you are a first-timer buying a home with a home mortgage, and we will give you some tips to save money to take your first steps in the right direction.
Buying a home mortgage
If you are planning to buy a home with a Sun West home mortgage, these tips are for you. Learn how to avoid mistakes and save some money in the process.
Do your research
What is the mortgage rate? FHA? Do I need a PMI? If those words are new to you, it’s time to read. You need to be competent if you want to take the good deals and avoid getting scammed. Read a couple of articles, stay up to date with the mortgage rates and prepare yourself.
Raise your credit score
Your credit score is basically a number that show your creditworthiness to the lenders. This is one of the first things that any lender or financial institution will check if you want a home mortgage, and having a good one will help you get the lowest rates. You need a minimum of 740 credit score to opt for the lowest Sun West mortgage rate. Your credit score is obtained from a few things: payment history, amounts owed,length of credit history, types of credit used and new credits.
Don’t look for homes before getting the loan
One mistake people do is look for the place they want to live first and then applying for the loan. First you need the mortgage and later you can look for the home
Always get professional help
Get a reputable real estate agent. No matter how much research you do, nothing will beat the experience and knowledge a professional can bring to the table. Always look for references, ask your family and friends or find an agent who can provide you with references of his previous buyers.
Don’t call a unique lender
Some financial institutions can give you better rates than others, so it’s recommended to shop a mix of lenders to compare their rates. Ask them for quotes. Do some research about them.
Call all your lender options in the same day
The mortgage rates fluctuate almost every day, so it’s recommended to call your mortgage lenders in the same day to make a better rate comparison.
If you can, make a larger down payment
This will make you appears as a less risky person to your lender, and can make you obtain better rates.
Decide your loan duration
A 30-year fixed rate is less risky and you will pay less monthly, but in the long run is expensive. A short term loan will make you pay more monthly, but will save you a lot of money at the end of the loan. 3 or 4 percent rate more will translate into a few thousand of dollars.