Getting a house isn’t always as easy as it looks. There are things to factor in before considering getting a mortgage. There have been stories about how people get entangled in the quest of getting a mortgage. Most people don’t even know where to begin in this process.
So, to save you the stress involved when getting a mortgage, we’ve outlined the three things you need to note before considering a beginning the journey.
Endeavour To Get Pre-approved For A Loan
To consider getting a mortgage, buyers should first seek and get pre-approved for a mortgage loan. This pre-approval determines how much money you’re eligible to borrow from the bank.
With this, it’s possible to be approved for a loan of two and a half to three times your annual earnings. For example, let’s say you’re earning $100,000 a year. You could be eligible to receive a mortgage loan of $200,000 to $250,000. With a sizeable down payment, these numbers could be increased.
PS: A lot of real estate agents won’t even consider doing business with you if you don’t have valid clearance from your bank for a mortgage loan.
Save A Reasonable Amount For The Down Payment
It isn’t a necessity to pay a 30% down payment on a mortgage. However, it’s advisable to down-pay as much as you can for a better chance at acquiring the home that you want. Most buyers don’t even know about the down payment options in acquiring a home.
Think About Your Lifestyle While Searching For A Home
When searching for a suitable home to buy, think about your lifestyle. Think about the kind of home that would be best for you as a bachelor, a parent, or a student. These factors play an important role in the search for a home. You wouldn’t want to buy a home suitable for a bachelor when you’re married with kids.
Another thing to note while searching for a home is the proximity to your workplace, school, or your child’s school. You don’t want to settle into a new place just to have to spend hours on the road each day just to get to work or take your little ones to school.
When buying a home, consider the key factors stated above to help you find a place that will suit your lifestyle. Get pre-approved by your bank, save up for your down payment, and find a home that will suit every aspect of your lifestyle. Getting a mortgage is a process, so make sure that you are always prepared for all of the questions you may get from a loan officer. Also, if you would like to learn more about getting loans and the mortgage process, check out “The ABCs of Real Estate Investing” by Ken McElroy for more information.