Whether you are a first-time home buyer or a person looking to buy a new home, there are a few things that you have to keep in mind before you go to a bank and ask for a mortgage loan. As a piece of first expert mortgage advice, a mortgage loan is not a shopping spree that buying clothes impulsively can’t hurt you any worse, not even a woman who can’t decide which to wear, so she changes clothes many times before she can finally get out of the house.
Study the loan terms. The standard loan terms are 15 years and 30 years to pay. Think of your current job and position. Is it stable enough to pay the loan off by the 30th year or are you earning enough to pay the house for 30 years? In the worst-case scenario, if you only have one job, and you happened to fail at it to the point of losing the job, how much savings do you have, and how soon can you find another job?
Another advice from a mortgage advisor is to think of the interest rates. Long term loans offer higher interest rates but lower monthly payments. On the other hand, short term loans offer lower interest rates but higher monthly payments. See, if you want to pay off the loan in a shorter period, then you must have enough money for each monthly payment. It’s either you have multiple sources of income or you earn more than enough in your current job. But if rushing is not in your mind, then taking long term loans should leave you just fine, as it is unlikely to eat up a great amount of your income. See also if an adjustable interesting rate works better for you.
Next, consider your credit score. Is it a good credit score or a bad one? The lowest credit score that you have to have before you qualify is 620 for a conventional loan. Anything lower than 620 requires a credit score repair. Keep in mind that one of the qualifications to acquire mortgage loans from banks is a good credit score.
A mortgage advisor can ask you, “How much budget do you have?” Calculate all the costs and see if you are ready for the mortgage loan. Inquire how much is the mortgage principal, interest and taxes, insurance, including the utilities and repair expenses. A mortgage borrower needs to have an estimation throughout the period from the moment you get a mortgage loan up to paying it off. Having a laid-out plan and calculated numbers can save you from getting broke and shortening. Ask yourself again, do you have enough budget to pay off the mortgage loan?
If your answer is yes, then you are ready to take the next big step! But if your answer is the other way around, then look for a private mortgage lender instead of a bank, another expert mortgage advice from a mortgage advisor. With a private lender, the borrower can skip getting a mortgage loan without a good credit score, skip the legwork and hassle, and can save you time and money for they can offer lower interest rates and flexible terms.
See, asking for expert mortgage advice is not bad at all, so long as they help you manage your finances and help you decide which option best fits your current situation in terms of money. You do not have to go through all the works all alone. With a mortgage advisor, buying your dream house is possible and reachable!