Getting first hand information from longtime homeowners about purchasing new homes on mortgage will help you avoid common mistakes new homeowners usually make. The advice you can get from them will definitely help you a lot.
The elections are over and the new administration is set to assume the reins of government in a little over two months. While it is very hard to predict which way the new officials would go in terms of policies for the real estate market, the fundamentals of it all remain the same. In fact, if you are a first time home buyer, you will get lots of valuable information about purchasing a new home with a mortgage from longtime homeowners.
Check first whether you qualify
First time home buyers are sometimes at a loss on how much they really can afford to spend for a house. Homeowners who have already been there will tell you that purchasing a house on a mortgage usually involves figuring out your debt to income ratio. You also need to factor your credit history and the down payment needed for that new house. According to the US Bank National Association, all of these will be considered by the mortgage company to figure out the amount you can borrow.
How much can you really afford?
Once done, you will have a good grasp of how much you can afford in terms of upfront payment and monthly mortgage dues. Doing this at the outset will help you save a lot of trouble of going to a lending institution only to find out you do not qualify for such mortgage.
A down payment you can easily pay
There are some homeowners who will tell you that they too find it hard to come up with the entire amount of the required down payment. Fortunately, some of them were able to avail of loan assistance programs that many mortgage companies are offering. You can use the proceeds from these loans to be part of your full down payment. To know more about loan assistance programs in your state you can visit the website of the US Department of Housing and Urban Development.
Your home for keeps
When you purchase a home, make sure that you envision yourself living there indefinitely. There are lots of advantages in this. For one, you get to know and befriend a lot of people in your neighborhood. Another benefit is that when you retire or reach the age of 62, you are eligible to apply for a reverse mortgage program that is usually offered by mortgage companies like Primary Residential Mortgage, Inc. It’s like receiving money from the lending firm that you can use to pay for your groceries, monthly bills and health care.
There are many other useful pieces of advice that you can get from longtime homeowners, particularly in terms of purchasing a new home with a mortgage. Most of these tips have stood the test of time, meaning no matter which way the real estate market goes, the essentials still remained the same. So if you are looking to buy a new home, listen to what they have to say because their tips can go a long way.