Mortgage Process

by Madhu Sarkar

MORTGAGE PROCESS

Assess and prepare before buying your new home

Are you all set to buy a new home? You are about to make one of the most important financial decisions. Have you prepared yourself for the big financial decision?

The way choosing a house for yourself is important, similarly choosing the right mortgage to pay for your new home is equally important. Don’t rush into it.

Action Steps:

Prepare yourself simultaneously for your mortgage while you are choosing the right home for you.

Check your credit score: It is advisable to check your credit score before facing any unpleasant surprises and corrections you need to make. You must know your credit score because your loan qualification and interest rates will depend on that and it is thus important for your budgeting purpose.

Assess your Spending: Take a realistic look at your current spending pattern. Your new house surely adds up to that expense, thus having a check on your expense pattern will help you assess the surplus to go ahead with the new house expenditure.

Budget for your new home: Once you have summed up your current expenditure, now assess the monthly budget you can stretch for your new home. Your total monthly home payment includes mortgage principal, interest, property taxes, homeowner’s insurance, and any other mortgage insurance. Estimate other household expenses too.

Determine your down payment: List out all your savings and investments and add up your total available funds. Decide how much you want to set aside for your other savings goal, moving costs, renovation purposes, and also your emergency funds (at least 3 -6 months’ expenses). Now gather the amount for your down payment.

Be sure you are ready to go ahead: Buying a home is a big financial decision. After you have assessed your finances, now it’s time to decide whether are you ready to go ahead. Estimate how much can you afford to spend and if you are ready to go ahead or not.

Once you have set your priorities and budget you are ready to start your home shopping. We can help you search for your dream home.

Now, it’s time to choose the loan agent/lender that’s right for you.

Explore lenders, compare your options and select the loan offer that’s right for you. Discuss with your well-wishers.

Once your offer has been accepted by the seller and you have chosen the mortgage loan and lender, it’s time to focus on the closing process. You have to be ready for a lot of paperwork submission and keep a track of it.