Buying your first house can be intimidating and a bunch of questions might race through your head. What are current interest rates? How much can I afford? Will I qualify for a mortgage loan? The process isn’t always easy or fast, and it’s normal to feel a bit anxious.
However, buying a house doesn’t have to be an overly stressful experience. There are plenty of reputable mortgage lenders in Charlotte, North Carolina. Most are ready to hold your hand and guide you through the process.
First Financial Services is one option in Charlotte. This lender has an array of helpful tools and resources on its website, all designed to make the buying process simple. This includes articles, mortgage calculators and information on current mortgage rates.
The more information you have, the simpler the process. How can you get through the process with ease?
1. Get your credit check. A top mistake made by homebuyers – forgetting to check their credit beforehand. It doesn’t matter how much money you have in the bank, or whether you’re employed, if you don’t have an acceptable credit history, the bank will not approve you for a loan. You don’t need perfect credit, but you’ll need at least a score of 620 for an FHA mortgage and a score of 680 for a conventional mortgage loan. Order your credit report from Annualcreditreport.com and your score from Myfico.com.
2. Know the difference between mortgage loans. FHA and conventional mortgages are two popular products, and in all likelihood, your lender will offer one or the other. There are differences between the two. If you don’t have the best credit score and little cash for a down payment, an FHA mortgage (insured by the Federal Housing Administration) might be the way to go. Then again, if you have an excellent credit score and plenty of cash, a conventional mortgage might be best. Talk to your lender, ask questions, and know your options.
3. Save your pennies. Some first-time homebuyers are shocked to learn that lenders require a down payment. Understand that it’s not 2006, and since the mortgage crisis, lenders now require down payments, as much as 5% for conventional mortgage loans. This is on top of closing costs, which can run between 2% and 5% of the purchase price. Plan accordingly and take steps to save your money. This takes sacrifice and may require skipping an annual vacation, shopping less, entertaining less and cutting other unnecessary monthly expenses.
4. Get pre-approved for a mortgage loan. If you’re thinking of buying a house, meet with the lender and get pre-approved for a home loan. This is the easiest and best way to know whether you even qualify for a home loan. Plus, a pre-approval estimates how much you’re able to spend on your new place. The importance of a pre-approval can’t be stressed enough. Mortgage lenders and home sellers will take you seriously, and with approval, you avoid bidding on homes outside your budget.
Don’t let the home buying process wear you down. Whether you’re a first-time buyer or purchasing another home, there are ways to get through the process with ease and walk away with the house of your dreams.