Thursday, 17 August 2017

Mortgage Rates and Lenders: Buying a New Home 101

Written by Posted On Wednesday, 08 February 2017 17:49

Buying a home is exciting, but it is a very complicated process. Almost all buyers get a mortgage to purchase their home, so it's important to be as educated as you can about the process. Here are some of the most important things to know about getting a mortgage for your home.

Your Credit Score is Important

Most borrowers fret about their income and how much of a down payment they have. While those things are important, your credit score is equally if not more important. Your credit score is the only real predictor a lender has as to whether you are likely to repay your loan. That's why it's important to keep your score high. Only those with the highest credit scores, usually around 750 and above, will get the lowest mortgage rates.

Get Pre-Approved

Before making an offer on a home, you should work with a lender to get pre-approved. Though the pre-approval process does not guarantee you a mortgage, it does give you a good idea of how much a lender is willing to give you and what you can afford. That can help you set the price range of homes to look at. Being pre-approved also can help in the negotiation phase with sellers, because they will be more likely to work with buyers they know can get the loan and close the deal.

Get Help From Your Agent

Your real estate agent has experience in all aspects of the buying and selling process, including getting a mortgage, so you should use him or her as a resource and seek out help. Ask for lender recommendations if you don't already have an institution in mind. Your real estate agent, like those at RE/MAX Associates of Dallas, should have many resources at their disposal to make the home-buying process simpler. It’s also a good idea to see if you might qualify for any special lending programs that can help you get a better deal.

Be Prepared for Closing

Making an offer on a home is the easy part. The difficult part is actually closing the deal. Be prepared for closing to take up to two to three months and for potential problems to arise. The most common issue are inspections turning up problems and appraisals not coming in with a high enough value. Make sure you have contingency plans to deal with closing issues.

Buying a home is a worthy goal, but getting there is a lot of work. Finding the right home, qualifying for a loan and closing the deal takes time, so you need to be patient. It helps to do your homework and be prepared for the unexpected.

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Rachelle Wilber

Rachelle Wilber is a former real estate agent now turned freelance writer that specializes in home realty, mortgage, and building. She graduated from San Diego State University with her Bachelor's Degree in Journalism and Media Studies.

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