Are you tired of your landlord? Would you like to move out and live on your own without a roommate? Then it’s probably time you considered getting a mortgage. With Kloze Home Loans it is easy to get the best Davie mortgage rates. Below is a simple step-by-step plan that will help you navigate the journey to homeownership.
The first thing you need to do in buying a new home, is to identify the location of where you want your future home to be. Next, you will need to establish the market rates for the type of home you are looking for. Search an MLS (or multiple listing service) for homes that are on the market in your location of choice.
This might take a while, and since this is a long-term investment, we suggest that you take your time going through different websites and checking out their websites.
If you have a hard time determining what your mortgage rate is likely to be, feel free to use a mortgage calculator.
Determine Monthly Housing Costs
When calculating your monthly housing costs be sure to include the cost of your insurance as well as the taxes. This is important because these two costs have been known to double a borrower’s mortgage payment.
To get an idea of how much you are likely to pay for insurance, pick any listing in your desired location in Davie and call an insurance agency to get a rough estimate. Since insurance agents offer this information without obliging you to buy a policy, it is a quick and easy way to get the figures.
To determine how much taxes you are likely to pay, check the property appraiser’s website.
Please note that exemptions and other intricacies that are featured in local tax law can cause differences between tax bills paid for by the current homeowner and what you will likely pay.
You need to find out how much you will fork out for your closing costs. You should not overlook the upfront cost of moving into your home. Closing costs include a wide range of fees which are listed below:
- Title and settlement fees
- Lender’s origination fees
- Taxes and prepaid items
- Homeowner’s association fees
- Homeowner’s insurance
Take a good look at how much you are making. Can you afford to make monthly payments and still live comfortably? Fannie Mae recommends that homebuyers don’t spend more than 28% of how much they make on housing.
In fact, if you are spending more than 30% of your income on making your payments, there is a good chance that you will become house poor.
Consult with realtors who serve the location you are interested in! What is their forecast for that housing market? Do they think prices will fall, rise, or stay stagnant?
The Big Picture
Buying a home is a worthwhile investment, however maintaining it can be expensive as well as labor-intensive. This is because unexpected costs for various things might crop up such as purchase of new appliances, plumbing problems, roof repairs etc.
Since there is no landlord to deal with, all these expenses can quickly overwhelm you not to mention drain your account.
After making all these considerations, if it still makes sense for you to take out a mortgage, go right ahead.
Examining Your Credit
The inability to make a substantial down payment or having blemished credit can easily quash your homeownership plans. This is why it pays to take a look at your creditworthiness prior to starting the process of homeownership.
Reach out to all three credit-reporting bureau and receive your free annual credit report. Carefully go through the reports trying to spot any unresolved issues or errors that might exist. If you spot any errors, be sure to report to the credit-reporting bureau and monitor your reports to make sure that any errors are corrected.
In addition, you should get your credit score just so that you can determine what type of loan programs you qualify for.
Get your paperwork ready as this will eventually save the lender plenty of time. Some of the paperwork you should get ready includes:
- Tax returns dating back 2 years
- Names and addresses of your landlord for the last 2 years
- Statements from current credit lines and loans
- Bank account statements
In this final step, you will find lenders who can get you preapproved. Pre-approval is very important as you have a better bargaining position when looking for a suitable home. Click here to find out what an acceptable interest rate is.
When you apply your loan with multiple lenders you are likely to get the best Davie mortgage rates. You will be able to do this without damaging your credit score.
If you find that banks are not willing to give you a conventional mortgage try us Kloze for an FHA-backed mortgage.