Home buying can be a daunting task. Between hunting for a house and securing a mortgage, it can be easy to get lost in the loan procedure. But the more prepared you are from the beginning, the easier the entire process will be. As lending experts, we have some tips to help you make sure you get the home loan you want.
Crunch some numbers
Before you even start looking for houses or applying for loans, you need to have an understanding of your budget. How much money are you planning to put down? How much are utilities? What are the associated fees and property taxes? These are the questions that will determine the type of loan you seek and also guide your home search.
Check your credit score
If you think that your credit score might be questionable, get your free report from AnnualCreditReport.com before the bank runs a credit check for your application. Getting your credit in line now will equal better insurance rates and a smoother application process.
Gather your papers
Dig into your drawers for any official papers (W-2s, recent paycheck stubs, information regarding investments and large debts) you may need. Check with your advisor from the start to make sure you know what is required from you.
Balance your borrowing
This is not the time to buy a car, overspend on your credit card or do anything that could change your financial standing during the mortgage review period. Shifting large amounts of money can impact your credit score so postpone big purchases and save where you can.
Expect the unexpected
Closing costs can include legal fees, taxes, inspection costs, survey fees, title insurance, loan origination fees, and more small print items. Buyers often don’t know the exact amount of additional costs until days or even hours before signing. If you are given a rough estimate, plan for the worst.
The process of acquiring a mortgage loan can be intimidating, but Raccoon Valley Bank wants to make it as easy as possible for you. Visit our Mortgage Center for more information and to apply for a mortgage today!