Preparing To Get A Home – Tips You Should Know About Your Mortgage!
So you’re tired of renting and think it is finally time to own a home? Before making the leap to home ownership, there’s one question you will need to ask and answer: what monthly payment works best for my budget? From there your Mortgage Loan Officer and Real Estate Agent can advise you best.
Here are some basic tips to consider when it comes to your mortgage options, down payments, and budgeting for monthly expenses to help you decide if you’re financially ready to buy a home.
Choosing the Right Mortgage
The mortgage option you choose will affect all of your remaining decisions about down payments and monthly budgeting. Various mortgage programs are available for all home buyers, including FHA loans, conventional loans, VA loans, Rural Development loans, fixed rate or adjustable rate loans, and the more specialized Jumbo Loans. Your mortgage options should be thoroughly investigated and understood prior to beginning your search for a particular home.
Determining the Down Payment
Your down payment is one of the most important numbers to consider when purchasing a home. You should take into account your available savings, your comfort level in making the investment, and the closing expenses associated with your mortgage when making this decision.
Your Monthly Income and Expenses
As you research your available mortgage options and determine your down payment, you will need to consider your monthly income and the expense of becoming a homeowner. Items to examine include your weekly or monthly income, your utility expenses and other monthly obligations like car payments, student loans, groceries and transportation. If you maintain a checking account, you can prepare yourself to answer these questions by thoroughly examining your last six months of statements.
Covering the Unexpected
If you’re a first-time home buyer, you may not realize that all those calls to your landlord for repairs are now your responsibility. Storm damage, plumbing issues or an air conditioner unit that won’t cool can be very expensive. Rest assured, there are options available that can help you protect yourself from unexpected repairs. Homeowner’s insurance, home warranties and home inspections are the most commonly considered. Many of these protections will offer plans with monthly premiums that can be included in either your mortgage payment or as an allocated monthly expense.
Partnering with the right real estate agent and mortgage banker will provide you with the necessary information and resources.