Buying a home and applying for a mortgage—especially if you’ve never done it before—can be scary and complicated. There are so many things to consider and steps to take. The best way to avoid expensive mistakes and frustration is to let a professional help you navigate the whole process.
Most people start shopping for homes and mortgages online. That gives you a sense of what’s available and what price range you’re in. But at some point, you’re going to want the assistance and advice of a live person. Some buyers start with a realtor so they can begin looking at homes right away. Others start with a mortgage professional to get them pre-approved for financing and explain unexpected costs like appraisal, home inspection, property tax, transfer tax, etc.
In competitive markets, being pre-approved for financing is essential. But finding out how much you qualify for is only half the story. A responsible mortgage professional will discuss your overall situation and make sure you can comfortably afford to borrow that much. There are always additional ongoing expenses to consider, like repairs, maintenance, new furniture, decor updates, homeowner association dues, etc. If you max out on the financing, you won’t have enough to cover these expenses.
Another consideration is the down payment. Many people delay home ownership because they assume they have to save 20% of the purchase price. However, if your credit score is healthy, you may be able to get a conventional home loan with a down payment of just 5%. To make it even easier, the entire down payment can be a gift from a family member. According to a recent National Association of Realtors survey, 28% of first-time homebuyers sourced their down payment from a relative or friend.
If you’re considering buying and don’t know where to start, give us a call. As your local mortgage professionals, we’re here to simplify the process and make sure you get a home you can afford today and tomorrow!