5 Important Things to Know Before You Buy a Home

You don’t need to be a millionaire or rocket scientist to own a home, but you need to be well-informed. There are some things to know before buying a house. Here are five of them.

#1: Know Your Credit Score

Your credit score determines not only whether you’ll qualify for a mortgage but also what your interest rate might be. The higher the score, the more likely you’ll get a loan with a reliable lender at a reasonable rate.

#2: Know Your Budget

Knowing what you can afford is essential before shopping for a house. A good rule of thumb is to spend less than 25-30% of your monthly gross income on your mortgage payments.

#3: Know What You Can Qualify For

This goes hand-in-hand with your budget. Knowing how much you qualify for can help you determine your actual budget. Many homebuyers qualify for more than they should spend and tend to max out their loan potential leaving themselves house-poor.

#4: Know What You’ll Need for a Down Payment

Different loan programs require different down payment amounts. A mortgage lender can help you decide what loan works best for your situation and will advise you on the necessary down payment amount.

#5: Know Your Local Market

Understanding housing prices where you want to live is helpful to you having a feel for what you’ll need to spend to purchase a house in that area. Looking at other areas can help you get a feel for your local real estate market and could inspire you to broaden your search area.

Being informed puts you in the best possible position when deciding it’s time to buy a home. Start with a knowledgeable and experienced lender who can help you navigate the complexity of mortgage loans. Contact the team at Midland Mortgage Corporation for the guidance and loan programs you need to get you in your new house.

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