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  • 10 Things You Should Know Before You Buy

    Wednesday, May 01, 2019   /   by Amber Felton

    10 Things You Should Know Before You Buy

    So you're thinking about purchasing a home? Whether you are a seasoned homebuyer or new to the process, there are things that we recommend you to know before you buy. Take a look at this list of 10 things that you should know prior to buying a home: the mortgage edition.

    1.) Length of Process

    The length of the process varies depending on the borrower and the amount of information needed to make a decision. 

    Tip: Staying in constant communication with your mortgage banker will help you remain informed of anything that could delay the application process.

    2.) Budget Vs. Affordability

    Just because you qualify for a certain amount of financing does not mean you necessarily need to spend that amount on a home. Unexpected bills, a loss in income or a change in family status all affect your ability to make your monthly mortgage payment in the future. You will also want to have savings and extra cash for vacations and unexpected expenses. 

    Tip: Budgeting for less than you can afford protects you from future financial obstacles.

    3.) Total Cost of Home Ownership

    Taking on the costs associated with home ownership can be a difficult transition. Cosmetic changes, new/additional furniture or appliances, and decor are just a few of the costs that come along with home ownership. There also is not a landlord to call if your refrigerator stops running or your AC unit gives out. It is important to consider these factors when determining how much home you can afford. 

    4.) Selecting A Mortgage

    Each mortgage program has its own qualifications and benefits. We recommend contacting a mortgage expert when you're ready to start searching for a home. This will help determine your qualifications as well as which loan is best for you.

    5.) Credit Score

    Your credit score is one of the largest factors in determining whether or not you will be approved for a mortgage and what your interest rate will be. Researching your credit score is before applying can help you verify the accuracy of your credit report.

    6.) Down Payment

    The down payment should not scare you off from buying a home. There are programs that can assist you in making your down payment. 

    7.) Early Repayment

    Most mortgages require a 15- or 30-year commitment. This may seem like an overwhelming commitment; however, it is possible to pay down your mortgage early by making two payments each month. 

    8.) Mortgage Insurance

    Mortgage insurance is another fee that can make a monthly mortgage payment seem too costly to bear. For conventional loans, mortgage insurance can sometimes be canceled in about 24 months. 

    Tip: Ask about split premiums on your mortgage insurance. This divides the mortgage insurance cost into an upfront premium and a smaller monthly renewal fee.

    9.) Pre-qualification

    A pre-qualification helps you determine the size of the mortgage you may qualify for based on the information given by you to your mortgage expert. 

    Tip: We recommend you to get pre-qualified as this is a powerful tool in the home buying process and can make the loan application process easier.

    10.) Buying After a Foreclosure, Bankruptcy, or Short Sale

    Having a past foreclosure, bankruptcy, or short sale on your credit report does not mean you will not qualify for a mortgage. There are many other factors that are considered when determining mortgage loan eligibility.

    Are you ready to buy a home? Contact us today at 912.737.2935 to get scheduled for a consultation! One of our experienced Buyer Partners is ready to help!

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