When you are about to embark on the process of getting a mortgage, you want to be able to smoothly navigate through the process. If you get your ducks in a row beforehand, that is entirely possible! Here are a few tips that will help you get a mortgage that fits your needs.
- Start saving early- Planning is extremely effective for setting you up to get a mortgage that has favorable terms. The more you can put down, the better terms you can achieve. The best-case scenario is 20% down, so you can avoid mortgage insurance premiums. You should also be ready to cover closing costs, moving costs, and potential upgrade or repair costs.
- Check your credit- Get a free copy of your credit report so you can determine if there are any errors that should be corrected prior to applying for a mortgage.
- Strengthen your credit- Keep your credit balances as low as possible, but do not close any paid-off accounts. Continue to pay everyone in a timely manner. Avoid applying for other credit lines, as these could reduce your credit score and make it harder to get a mortgage.
- Choose a real estate agent carefully- Experience matters! You want an agent who knows the market, can perform accurate home value estimates, and has mastered the art of negotiation.
- Get preapproved- Once you are confident your credit score is as good as it can be and you have the amount saved you will need, the next step is working with an experienced mortgage broker to learn what you qualify for. Take this step before you begin looking at homes so you know what price range you should consider.
If you would like more tips about preparing to buy a home or are ready to move forward to get a mortgage, reach out to us at Harbor Mortgage Company. We will go over the various types of mortgages and evaluate what would be in your best interest. Contact us today to learn more.