Knowledge is Power—Put Yourself on the Path Towards Smart Finances.
Throughout my time in the industry, I have become an expert in the field and a Senior Mortgage Loan Originator since 2001. I have volunteered a lot of my time with the Denver Metro Association of Realtors and seen many families navigate the process of buying a home.
Since buying a home can end up being one of the most significant purchases of your life, it’s essential to be prepared. Before signing a loan application, you should understand the in-and-out process, which is something I can guide you through to make an informed decision.
Some clear things to think about.
1. Your credit score. Before even applying for a mortgage make sure to identify your credit score. This is one of the most significant factors in knowing whether you will be approved for a mortgage. Also, the better your score, the less interest you will pay over time. One tip that many people aren’t aware of—you can obtain one free report from each of the three major credit agencies every year.
2. How much can you afford? Sit down and have a clear understanding of what your budget is and identify how much you can afford to pay towards your monthly mortgage payment. All of your housing costs do include your homeowner’s insurance, property taxes, maintenance, and utilities. Also, make sure your closing fees are rolled into your mortgage loans—which they typically are.
3. Type of mortgage. Do the research and know what options are available. Sit down with me and discuss the difference between a 30-year fixed rate mortgage versus an interest only home loan. Take into consideration your financial situation and your financial future. Never put yourself in a position of financial danger.
4. Special loan programs. There are special loan programs that are available, which is something I can help you identify. The government has loan programs which will help reduce the risk to mortgage lenders and therefore give you opportunities you may not have initially considered. For example, different states have programs aimed at first-time homebuyers or even programs for purchasing a home within your city or neighborhood that help you pay for your first home. These are critical items to check into because they can reduce the total amount required to borrow for your mortgage.
5. The best deal. Always shop around. I am someone who is very transparent and shopping around before deciding on a lender is essential before you sign on the dotted line of a mortgage application. You always need to know exactly what the closing costs, fees, and any other items you will be charged.
While you may consider yourself thoroughly knowledgeable, these are only some of the items to take into consideration before trying to buy a home. Don’t be blindsided–always do your homework and thoroughly understand how the home loan process works. Lastly, really think about what you want. Knowledge is power and will lead you on the path to smart finances.