May 28, 2014
Not all home mortgages are created equal. In fact, there are dozens of different types of loans, all managed by hundreds of different types of lenders – from credit unions to bankers, brokers to stock brokerage firms.
So if you’re thinking about purchasing a Wake County home anytime soon, it’s important to take your time in choosing the right home loan.
Today, I’m going to tell you about some valuable strategies for picking the right mortgage.
Pick The Best Mortgage for Your Wake County Home
The first thing you need to do before applying for a mortgage is to really analyze your finances. After all, your mortgage is most likely going to be between 15 and 30 years long. You don’t want to be a year into that obligation and realize that you can’t afford your mortgage.
Remember, lending companies might not have your best interests at heart. They will likely approve you for the highest amount they are willing to lend, which may or may not be what you can afford. So it’s up to you (and the real estate professional you’re working with) to determine what you can afford.
Take note of all of your income sources as well as your expenditures. Be realistic about what you can comfortably manage month-to-month. Don’t forget to consider insurance costs, taxes and HOA dues.
Take the time to shop around for a loan. As previously mentioned, it’s not advisable to settle on the first loan you come across. Take the time to inquire about various mortgage programs and what the terms are.
Get information on loan costs like interest rate, broker fees and points, as well as prepayment penalties and the loan term.
And then do side-by-side comparisons.
Also, you should know that there are two main types of places to buy mortgages: direct lenders and mortgage brokers. The main difference is that direct lenders have money ready to lend by brokers are intermediaries that work with lenders and act as a middle person.
Finally, apply for a loan. Be prepared to provide such information as the length of time you’ve been in your current job, your income, your assets and your liabilities. You will also likely be asked to provide bank statements over several months.
This might seem intrusive but it’s all a part of the process to ensure that you can afford the mortgage. And when you’re approved, you’re one step closer to owning the home of your dreams!
Helping You Buy Your Next Wake County Home
Don’t go through the home buying process – much less the mortgage process – alone. Contact me, Rachel Kendall, and my team of Wake County real estate experts today to discuss applying for a mortgage. We would love to help you realize your home ownership dream!
Until next time,
Rachel