Many first-time homebuyers aren’t prepared for the amount of time, work, and energy it takes to get a mortgage. They think that finding the perfect home is the hard part, but that’s actually the fun and easy task. Once you sit down to start getting your financing in order, you may be shocked at what it takes. Here are a few tips that will help you be better prepared for getting your first mortgage.
• Ask your friends, family members, and co-workers for recommendations on a lender or mortgage broker. Just because a lender offers a really low interest rate may not make them the best. Some lenders will go out of their way to find solutions for you while others will not. For your first mortgage from Empower Federal Credit Union, you may want that extra help.
• Watch mortgage rates and ask your lender or loan officer if you can get that rate locked in or if you should pay points to get a lower rate. You may also want to pay attention to the market as a whole to see if it’s a good time to buy houses.
• Decide how much you can comfortably afford to borrow. If your monthly mortgage payment all but wipes out your bank account every month, you may find yourself losing your home. Also remember that you’ll have to pay insurance, property taxes, and other costs associated with your home that you may have not had to pay in your previous lodging.
• Save up your money so you can make a down payment. While some lenders can get you a mortgage without one, it will save you a lot of money in the long run because you’ll have less principle that’s subject to interest. If possible, save up enough so that you can pay 20 percent of the total purchase price as a down payment.
• Have all of your paperwork together when you first walk into the loan officer’s office. You’ll need things like tax returns, copies of recent pay stubs, bank account information, and information about things like stocks, bonds, and other sources of income. Having everything ready to go will make the process that much easier.
Remember that getting a mortgage is a process and that your loan officer or mortgage broker is there to help you with any questions you may have. However, following these tips can help you navigate the process with less stress.