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What to know about Purchasing a Home
Do I find a home first?
Looking for a new home is exciting and scary all at the same time. What is the first step?
Do I find a home and make an offer then get approved? Or, Do I get pre-approved and then find a home and make an offer?
It can be very confusing on the first step to purchasing a new home. It is always important to find out how much you qualify for, before you start looking. There are many websites that will allow you to run an estimated mortgage loan payment to see if you can afford the home price you are looking at. United Mortgage Corporation of America has a great, free advice.
Purchasing a Home?
Turn the home of your dreams into reality. Whether you are buying your first home, second home, or vacation property, use this FREE self-help tool to determine exactly what type of purchase loan is best for you.
Do you know what your credit score is?
Do you know what your credit score is? Why do you need to know what your credit score is? Well your mortgage interest rate is based off what your scores are. Did you know that you have 3 different credit scores? Banks and Mortgage Brokers go off your credit score to determine what mortgage interest rate you qualify for. Credit scores range from 350 to 850, with 850 being the best score you can get.
Before you start shopping for a home, check your credit score. There are a few different companies out there that won't have a huge effect on the overall score when your credit is pulled. Pulling your credit will also have an effect on the overall score due to the number of inquires. The more inquires you have, the lower your credit score will go down. It looks like you are applying for a lot of credit it you have your credit pulled a lot in a short time period.
What about your debt?
Do you have 3 or 4 credit cards in your wallet? Did you decide to purchase a new car or RV? Make a budget to determine everything you make payments on every month. This will also help make sure you don't have anything on your credit that you are unaware of. For personal reasons, add in your utilities, food and other items you spend money on a monthly basis into your budget also. Monthly utilities are typically not included in any figures when purchasing a home but does have a huge effect on your budget.
Have your real estate agent pull up a utility report for the house you are purchasing to see the difference in the power/water bill from what you are currently use to paying. Some homes use more power/water than others. This will help keep you on track with your monthly budget.
Finding a good Mortgage Broker
Its important to find a good loan officer to work with. A good loan officer will help guide you through the steps in purchasing your home and answer all the questions you are going to have about a mortgage. Even if this is not the first house you are purchasing, it's still a good idea to ask questions because in the mortgage industry, things are always changing.
The team at United Mortgage Corporation of America has a knowledgeable and friendly staff on board to help guide you through the process.