For most people, buying a home is their biggest investment in life. That is why it makes sense to be very careful when making the purchase. Here are some tips you should keep in mind when making a decision:
Check Your Credit Score and Report
Even the best mortgage company in Utah may not give you good rates if your credit score is bad. As such, take the time to request for your credit report; you can do this for free. Once you know what kind of position you’re in, you’ll feel much better in pushing a bargain because you know your worth. Of course, if your score is low, you might consider picking it back up again before applying.
Consolidate Your Last 12 Months of Housing Payment
This refers to any rent and utilities you might have been paying for the last 12 months. It’s important to consolidate these so that the bank knows the shock effect that buying a new home will bring. Will paying the mortgage each month be a strain on your resources compared to paying rent each month?
Make Your Down Payment Big If You Can Afford It
If possible, make your down payment as high as possible to reduce the monthly payments and interest rate. You’ll be surprised at how much the bank will happily slice off your rates if you give them good assurance.
Have the Bank Lock Your Mortgage Rate
Make sure the contract has locked your mortgage rate or at least provided reasonable grounds in case of fluctuation. This will help keep your expenditures minimal as you pay off the loan.
These are just some of the things you should remember when buying a new home through financing. Don’t forget that the more you know about the house and the seller or lender, the easier it would be to make a decision.