Buying a new home is a great thing to do. Bobby Juarbe was able to purchase his home although they are ordinarily expensive in Great Neck, NY. They require plenty of monetary investment which is generally only possible through taking a loan.
Here are Bobby Juarbe's top home loan tips that will you ensure you don't settle and get a fair deal. These tips are just the start.
Tip #1: Determine your Down-payment and Start Saving for it
Start by determining your down-payment. This is the initial payment you have to make at the start of a buying process. This amount varies from lender to lender and the type of loan you select. On the whole, this figure ranges from 2.2% to 20% of the overall price of your home.
One of the ways of raising the down-payment is through establishing a monthly budget. As soon as you have ascertained your down-payment, make arrangements to have the amount deducted straight from your salary and deposited into the savings account you will have established. Consider using accounts like AutoSavers Plan that is on offer by Discover’s Bank.
Just in case you are not in the position to raise the huge down-payment, you should consider taking up loans from the Federal Housing Administration. This government agency assists home buyers who are unable to raise huge down-payments.
Tip #2: Check out your Credit Score
For you to attract the best possible home loan deals, you inevitably have to possess a good credit score. You should, therefore, obtain a copy of your credit score prior to starting the home buying process. This way, you will be able to gauge the appearance of your credit score to potential lenders and make the necessary improvements if need be.
These scores are available for free from the three major credit reporting agencies. These are the Experian, Equifax, and TransUnion, respectively. Do so by paying a visit to www.annualcreditreport.com. By paying a small fee to the respective reporting agency, you will also be able to receive your credit score.
Tip #3: Assemble your Financial Documents
Loan application process requires several financial documents. To accelerate the process, you will definitely assemble all the relevant financial documents beforehand. Some of the ‘must have’ financial documents are two previous pay stubs, your latest W-2, your tax returns for the last two years, and the latest bank and brokerage statements, respectively.
Tip #4: Make Good Use of the Mortgage Calculator
Mortgage calculators are tools with which you can compute the value of the home you can possibly afford. They are simple to master and comprehend. They basically let you know how much your monthly mortgage payments can be under varying home prices, down-payment options, and interest rates scenarios. They are also many and so, you should factor this diversity as you find the right one.
Tip #5: Compare the Various Offers
As Bobby Juarbe has already been hinted, mortgages vary in terms, amounts, relevance, and degrees of complexity. There could be a possibility that the loans offered by various lenders are of equal amounts. However, they may vary widely by their fees and points. These hidden characteristics also have a bearing on the overall desirability of the loans altogether.
You should, therefore, take time to understand all the various components that make up the entire loan first and foremost. Proceed thereafter to compare the various offers being made. Settle on the one that is most appealing.
Tip #6: Do not forget the Interest Rates too!
The interest rate is by far the key determinant of the cost of the mortgage. These rates change every quite often. However, it is possible to determine their general trend and make appropriate adjustments. You have to do this while planning to take up the loan.
Tip #7: Obtain a Pre-qualification
Bobby Juarbe will always want you to pre-qualify for a loan before the bankers can can work with you. The pre-qualification process basically entails ascertaining your income, savings, and the investments you have made. This is to provide them with a rough picture of just how much they can comfortably lend you without incurring unnecessary financial losses. This will also help them to determine the general price range you can possibly afford.
Tip #8: Familiarize yourself with the Various Loan Options
Loans, as stated, are available in various shapes and forms. These include the adjustable rate loans and fixed-rate loans, to mention but a few! You have to assess your own financial situation first and foremost. This will help you in ascertaining which type of loan best suits you or your unique financial situation.
Tip #9: Respond to your Lender in a Timely Manner
Throughout the loan application process, always be on standby and ready to furnish your lender with any extra piece of information they might ask for. You should also see to it that you return your paperwork as soon as you possibly can.
Delaying these two critical steps may interfere with the processing of your loan. This can, in turn, create problems with the specific home you intend to purchase. You should desist from squeezing yourself in a position where you may end up losing the very home you intend to acquire as well as the deposit you may have paid already.
Tip #10: Do Not Mess your Credit while it is processed
Some lenders are uncanny. They may surprisingly access your credit score a second time long after they had assessed it and given it a clean bill of health. You should, therefore, be careful not to do anything that may jeopardize the score during the payment process. Do this by paying all loans on time, not applying for any new credit cards, and not taking any new car loans, until the current home loan you are servicing is closed.