Last week a post here covered some tips to keep in mind when purchasing a home and obtaining a mortgage. Purchasing a home can appear to be a daunting task, but it does not have to be. If you make your decisions one at a time, with foresight and a strong knowledge and understanding, you will be on the road to success.
When finding the right mortgage, keep in mind both your current situation as well your future. You want to make certain to only borrow what you can afford to repay. This means not stretching your finances to establish monthly payments that are unreasonable or beyond your capabilities. You will need to keep in mind all your current and existing monthly costs when figuring out what you can afford.
It is also important to stay steady with your finances as you approach the time of your purchase and closing. Lenders will look at your credit report both when you apply for a mortgage as well as shortly before the closing. If they notice an increase or significant changes to your spending habits, it could be a red flag and affect your mortgage. The last thing you want to do on the eve of your closing is to have your mortgage declined due to a recent uptick in purchases.
If you find yourself uncertain about how to proceed with the purchase of your home, or have questions or concerns about mortgages and the real estate industry, you may find it helpful to reach out to law firm familiar with real estate law. Having the right team on your side during your real estate transactions can help save you both time and money in the long run.
Source: Bankrate, "10 Tips to have an awesome mortgage in 2017," Holden Lewis, Aug. 21, 2017