The word “mortgage” has a lot of negative connotations, and if you’re getting ready to have your first one, you may feel more than a little overwhelmed at the prospect of coming up with the money to pay it. Even if you’ve handled paying off a mortgage in the past, you may find it difficult to come up with good ways to secure your finances during the process. Understanding a little bit about what you need to do to prepare for your mortgage can go a long way toward ensuring you never run into a problem with it down the line.
Pick a Mortgage that Works: There’s more than one type of mortgage out there, and it pays to shop around and learn as much as you can about the different variations before you choose one. You may be able to pick a mortgage that can help you when tax time rolls around, or you might want to choose one that has a fixed rate so you don’t have to worry about any surprises sneaking up on you when you least expect them. Talking to a financial advisor is a great way to learn more about mortgages, but you can also research them online on your own time.
Leave Your Credit Alone: When it’s time to apply for a mortgage, the rate and length of time you can get will depend on your credit. You don’t want anything to affect your credit from the time you decide to start looking for a new home, so cut back on anything you put on credit cards at this time—unless it’s something small you can pay off within a couple of weeks. Don’t apply to any new credit cards during this time, either, and don’t try to buy a car or anything else that will require a credit check until after you’re through with your home.
Pay Off What You Can: If you’ve already got debt somewhere else, consider paying it off before you start really looking for a new home. Although it’s probably impossible to pay off everything before you shop for a home—and most people don’t do this—you can always make your credit look a little better by taking care of loans and other debts that may be close to being paid off already. If you’ve been borrowing a lot on your credit cards, try to pay them down before you start looking seriously into mortgage options as well.
Do you know how much home you can afford? Would you like to get pre-qualified for a mortgage loan? Call me at 480-686-4194