FINANCING TIPS AND TRICKS

    Get a pre-approval!

    This one is very important because an offer made on a home without a pre-approval will not be taken as seriously as one with a pre-approval. This shows the seller that you are prepared and that you have taken the proper steps towards purchasing a home.

    Do your loan homework.

    Now that you’ve taken the first step in getting pre-approved, you will want to make sure that you choose the right type of home loan for you. A fixed mortgage rate may be right for some, but not for others. Some may choose an adjustable rate mortgage instead. Talk to your lender and see what is the best fit for you.

    Shop lenders.

    Along the same line of doing your loan homework is searching for a lender. Loan fees can differ from one lender to another. A little due diligence may just get you the best fee rate possible.

    Be sure to budget!

    When you are deciding on the right home for you, be sure to take into account the additional expenses you will have besides your home payment. Becoming a homeowner means you will have homeowner’s insurance, property taxes, and expenses for any maintenance along the way. It’s important not to purchase outside your means, so you can live comfortably in your new home.

    Don’t do it alone.

    There are so many actions that occur in a real estate transaction. It’s important to seek out the help of a real estate professional. They are there to help you get the best deal, to make sure your inspections are done on time, and to ensure that things go smoothly for you.

    Consider the closings costs.

    Talk with your lender and try to get a rough idea of what your closing costs may be. You will want to take that into account in addition to your down payment. You don’t want to get to closing day and not have enough money to finalize the contract. Plan ahead and keep that money set aside specifically for those costs. Your agent will work to try and help you get those costs reduced as much as possible.

    Bump up those savings.

    So you’ve moved in to your home and spent your last penny on closing costs and down payment, but you didn’t know you still needed a new lawnmower and the washing machine isn’t working properly. Now what? Well, that is where those extra savings will come in handy. We can’t predict what may happen as homeowners, but we can try to be a little more prepared for those times.