Whether you’re a first time home buyer or the last time you brought one things didn’t go exactly as planned, there’s certain things you might want to think about before you get the lump amount of money and spend it on the new house. If you’re thinking of buying a house now you need to start planning way earlier. If you don’t want to get trapped in interest payments you’re not ready pay yet that is. Buying a house isn’t going to be simple. Specially the costs. They can keep piling up before you even realize, and when you’ve taken a loan to finance it, there’s more things that’s going to hit you unexpectedly and that’s why you have to consider a few things before you a poly for one.
Credit Scores.
If your credit scores are as appealing as a dead cat in a dirty sock, chances are you’re less likely you’ll be getting a good deal. Credit scores are significantly important and play a major role in getting your mortgage approved so be smart enough to try and improve them before you turn in with them. A credit score within the prime range will get you approved easily and increase your chance of lower interest payments so trying squeezing into the range. Also it’s common you find errors on your report so make sure to check and correct them before you apply for a mortgage.
Income.
You’ve probably obviously worked it all out. At least that’s what you think. You might be an employee working from a nine to five desk job that pays a steady income, but are you sure the income is enough to pay for the new house remodel, repairs and the monthly interest payments? If you’re self-employed finance brokers might perceive you to be high risk, so work on your credit scores and have large savings.
Down Payments.
Most if not all money lenders require a down payment. This payment could be from five percent to twenty percent of the cost of your home. Your down payment we important because it affects your loan to value ratio, which is the amount of equity you have in your home compared to your mortgage. The higher the amount of down payment, the more equity you’ll start off with. However if you don’t want to spend so much for a down payment talk to your home loan brokers for more legitimate ways to pay a lower down payment.
Bill Payments.
One thing lenders are going to do is scrutinise your payment history for a single late payment to disapprove. Undoubtedly lenders aren’t the most sympathetic people and are only interested if you’ll be pay your mortgage payments on time. In order to make sure they don’t lend a person who delays they’ll be specifically looking at your past seven years of bill payment history. If you’ve got unattractive one you sure can’t do anything about it, so make all future payments on time or early.