Saturday, June 6, 2015

Mortgage Tips

Buying your first home is indeed exciting but the process of getting the right mortgage and actually hunting for a good deal are hard tasks to deal with, especially if you are a first-time buyer. Doing a little financial homework can help simplify the whole process. Here are some tips to consider in your home-buying decision.

Check Your Credit

Having good credit is crucial when it comes to getting a mortgage in a strict lending situation. The homebuyer’s credit score is one of the most important factors to qualify for a loan, so it’s important to keep copies of your credit history and credit scores from each of the three credit bureaus. Go through the reports for problems, such as unpaid accounts or collection accounts. Fix them before you apply for a mortgage. It is common for lenders to ask for a minimum score of 680, but a score lower than 620 is not ideal.

How Much Can You Afford?

As a first-time buyer, you have to know your limits. Plan your budget and make sure you have enough left for additional costs.

Shop Around and Compare

As you search for various mortgage options, don’t forget to do more than just compare interest rates. Include closing costs and different types of loans. Choose the combination that will work best for you. To make the process easier, knowledgeable mortgage consultant like Vahe Hayrapetian can help you to explore your options and buy your first home with confidence.

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