If you’re like me, you are intimidated by starting the process of getting a mortgage. Like most things, it’s the unknown that is scary. Learning about the process bit by bit can make the process more manageable. So before you call your real estate agent, here are a few quick things to know to make the process less intimidating.
Examine your Financials
Before you do anything else, you want to make sure you are in a good enough financial state to even consider taking on this responsibility. Analyze your debts. Do you have a lot of debt? Will buying a house make it harder to pay off the debt? After analyzing your debts, make sure you have enough money saved to make a down payment. Will a down payment deplete you? Do you have enough for the home you want?
Not to be confused with pre-qualified, preapproval is more valuable to lenders. Prequalification can help you determine how much you can expect to pay, but pre-approval shows that your credit and documentation has already been checked and is good to go. Final approval will come after you choose a property.
Choose the Best Mortgage
This gets a little intimidating again. Terms, rates, and fixed-rates? These are all terms that can be a little jarring at first. What you should keep in mind is you should think about all of these things before going accepting the first thing you’re offered. Just remember, don’t get carried away and borrow more than you can handle.
It’s intimidating, but you don’t have to feel intimidated. Once you decide to get approved for a mortgage, you will already know how to get started.