If you’re like most people, you’ve spent a considerable amount of your adult life thinking about your dream home. Home ownership is a big part of the American dream; although, it doesn’t mean the same thing to everyone (condo downtown or large country home?). It’s fun to dream about floor plans and décor, it’s another thing entirely to secure an affordable mortgage, make an offer, and ultimately purchase a property. It’s important to streamline the more boring aspects of the journey toward home ownership, so you don’t end up sitting atop a mountain of paperwork with a mortgage you can only just afford.
Certain people will find themselves with other challenges, too, for instance if you’re looking for bad credit mortgages then you’ll find yourself with different options. Be sure to search around, look into a broker or specialised website and ensure you make an informed decision with the future in min.
Applying for Mortgages
Actually applying for mortgages isn’t challenging in that nearly every bank has an online system for applying for loans; it’s simply data entry and questions. The tricky part is that anywhere you apply is going to run your credit report, which has the potential to drive down your credit score, which if the offer isn’t affordable to you can make it impossible to be approved for a mortgage through another bank, one which could offer you a lower mortgage payment.
A broker saves you the legwork in regards to finding a mortgage you can afford. You give them your information and they determine what you’ll be approved for (and where). Then, they compare mortgage rates and terms without frequently running your credit report, which ensures that when you do find a reputable mortgage company, you have the best possible score to apply with. Brokers will do a great deal of due diligence, including steering you toward a reputable mortgage with no hidden terms or fees.
Saving Money on Mortgage Payments
One way to save money is if you’re a veteran. Your broker can help you find reputable VA loans. VA loans have better terms and refinance rates than traditional loans, and often require no down payment or PMI for service people or former service people. Home loan providers, such as Flagship Financial Group, offer these benefits whether you’re buying or refinancing and with low rates and low payments, they’re often the best choice if you qualify.
The general idea is that you should shop around for the lowest payment option; of course, this is why a broker is useful. Automatically agreeing to mortgage terms, without first shopping around for the best rate, is essentially paying double for something at a high-end boutique when the same product sells at a discount outlet for a percentage off.
You should also ensure the mortgage company has a positive reputation. Pay close attention to consumer reviews; for example, Flagship Financial has a number of positive reviews on a third-party website, which shows that consumers are satisfied with their mortgages. Be discerning and don’t be afraid to negotiate because if you can’t afford the offered terms, or it’s cut very close to what you can afford; otherwise, you’re setting yourself up for failure in the form of a foreclosure or repossession.
Another no-brainer way to save on mortgage payments is to purchase a house that is below what you’re approved for. Don’t max out your credit on a first home; instead, buy something that’s truly affordable to you (a good deal). Just because you’re pre-approved for $250,000 doesn’t mean you have to spend $250,000. Save yourself $100,000 and guarantee yourself lower payments by buying low and paying off your home early.
Remember: if you pay off your home early, you’ll have improved your credit, you’ll have equity, or you can sell. These things will contribute to your next home purchase, ensuring that next home has everything you want as opposed to everything you can afford.
Most people have a tendency to accept offers too quickly. You can get a better deal, so don’t sell yourself short. What you really want is to find a mortgage company that you can develop a mutually satisfying relationship with over the next 20 to 30 years. When you think about it that way, you can really begin to see why tackling the process with a broker is helpful.