Owning a home has always been an integral part of the American Dream, and despite the less-than-stellar housing market, buying a house today is more than attainable. Prospective homeowners who want the best mortgages need to do their research. Unprepared buyers can get stuck with an unfavorable deal.
There are a number of ways to go about picking a mortgage and finding the house of your dreams. Here are just a couple of helpful pointers that will get you on your way to find the best home loans:
- Be prepared to make a down payment of at least 3.5% of the total mortgage upfront. Different mortgage deals have different down payments but in general, most banks establish a down payment of 3.5%, if not more.
- Stick with your employer while setting up a deal. Changing jobs while locking down a mortgage can disrupt or even stop the mortgage process.
- Be sure to pick a deal that you can afford. This means that you shouldn’t spend more than 25% of your total monthly income on your mortgage payment. Spending more runs the risk of falling into debt.
- As soon as you are satisfied with the details of a mortgage deal (ex. the interest rates, the payment schedule, the down payment, etc.), sign it! Locking in on a good mortgage deal is much better than “taking your time” since the deal can quickly go awry.
- Having a good credit score is essential for finding a good mortgage deal. Home mortgage lenders look for applicants with a solid credit score. The Home Loan Learning Center claims that most lenders require a credit score of at least 680 for residential homes and 620 for federally-assisted housing. Cleaning up your credit score is simply a must.
If you follow this advice, the best mortgage lenders will be flocking to you! For more information about home mortgage lenders, feel free to leave a comment or question at the bottom.