Are you planning to buy a house this Year? The easiest and affordable way to buy a house is submitting to a Mortgage Loan, so you can afford the total amount of the cost of the house paying it in installments. We are aware that submitting to a Sun Westmortgage loan is one of the mosttiring situations, considering all the paperwork and all the time you have to dedicate to it. Here are some tips to make this task a little easier.
- Check your credit reports
Your Credit Report is one of the first things the Mortgage Lenders will look at when you apply for the loan. You must get sure that all your data is updated and there are no mistakes in your phone numbers, bank accounts or addresses.
Also, you should attempt to have a positive balance over all your credit scores. Pay your credit card at least until the debt is less than 15% of the limit, and if you can, negotiate a pay for delete with your creditors.
- Search for low rates from Mortgage Lenders
Do not settle for the first Mortgage option you find. It is important to shop multiple mortgage lenders before apply, ask them for quotes and negotiate with them. The mortgage rates or the closing costs can vary pretty much from a lender to another.
Also, if you are buying a house for the first time, you can find some assistance programs with lower rates and down payments percentages.
- Buy what you can afford
Of course you want a big and beautiful house with a wide yard and a pool, who doesn’t? But once you have checked your credit balance and looked at your mortgage lender options, you must focus on the choice of a house you really can pay. Try that your debt to income doesn’t exceed the 35% of your monthly income, because it is important to always leave a margin for emergencies, you don’t want to skip a month of the mortgage payment!
- Lock In your Rate
Once you have chosen an affordable home and a convenient Mortgage lender, you should talk to your lender about getting a rate lock. It is common that rates rise while you are near to your closing period, so a rate lock protects you from this. The normal Lock Rates last from 30 to 60 days, but with a good lender you can achieve until 120 days of margin.
- Check your options to make the dawn payment
The down payment must seem a difficult obstacle to overcome, but the truth is that there are plenty options to choose for paying it and get your mortgage.
Common mortgages demand at least a 5% of the house cost in down payment, but there are special options, like the FHA loans, which require just the 3.5% of your house cost. That may seem a small difference but when you translate that to a real number, you will be relieved with the discount.
Even with this smaller percentage, sometimes it’s still difficult to make the down payment. Two good choices to overcome this issue is using your tax refunds, that usually exceed $3,000, or if you have a direct familiar with better financial rates, you can make the down payment through a gift fund.
In the last case, you can apply for a mortgage loan with no down payment at all, like the VA Loans and USDA loans.