Most first-time homebuyers think that the mortgage process begins when they find the home of their dreams—but this really isn’t the most cost-effective strategy. Instead, before you begin browsing the market, consider these four tips. They will significantly minimize your stress throughout the mortgage process.
- Plan your budget in advance: When you plan to purchase a mortgage, you should consider the mortgage price, insurance, taxes, maintenance, and utilities. Once you’ve calculated these costs, create an affordable monthly payment. This will help you determine the price range of homes you should look into. To better prepare for this, you should prequalify for your loan to help guide you on what you can afford. Your mortgage advisor can also help you think through scenarios and guide you on establishing a budget for many of the costs involved.
- Prepare for the unexpected: Accidents happen—and this time you can’t call your landlord to come fix it. But if you plan for these accidents to occur then they really won’t be a headache for you. Put some savings aside solely for this purpose. In the long run, this will seriously help minimize stress! In addition, after the sale of the house, you can establish a Home Equity Line of Credit (HELOC) for improvements and, in some instances, unforeseen issues.
- Understand the process: Before you jump into the mortgage process, talk to your lender, agent, family members, and friends who have borrowed before and understand the process. Simply knowing you have someone to go to with questions will minimize your stress from the get-go.
- Know your lender: Familiarize yourself with the way your lender operates. Each mortgage specialist is unique, so make sure his or her process works for you.
Navigating the mortgage process may seem like a stressful process, but there are many ways to avoid getting overwhelmed. For more information about the home buying and financing process, check out our online E-book or contact one of our mortgage lenders today.