Is the Timing Right to Apply for a Mortgage Loan?

It may seem like you have been waiting for this moment forever. It is one of those big stepping stones in life. A purchase that makes you feel like you have finally become a real adult. Buying a home—especially your first home—is a moment you will always remember. Just like when you purchased your first car. However, before you make your move and start house shopping, there is one big first step you mustn’t forget: the home loan.

Are You Ready for a Mortgage?

Most realtors will want you to be pre-approved for a home loan before you go shopping for a house. Plus, it is always a good idea to know exactly how much home you can afford so that you can stay within your price range.

In order to be prepared before filing the paperwork for a loan, you need to keep a couple of things in mind.

First, be aware of your budget. If you do not have one set, or it has not been revised in a while, now would be a good time to look through your finances and write things down, so you know where you stand. Be sure to take everything into consideration: cell phone bill, utilities, car payment, groceries, extra- curricular activities, etc. Will your new mortgage payment fit? Also, do not forget that a house comes with the responsibility of upkeep. Therefore, you want to make sure you have room in your budget for lawn care, garbage pickup, homeowner association fees (if any), etc. Also, you will want to be sure you can still put some money away each paycheck for when emergencies happen, such as a burst pipe or a broken appliance.

Second, you will want to think of your long-term goals. How long do you plan to stay in the house? Is this the home you plan to live in for more than 10-20 years? Or, is this a home you plan to live in just for now? The answer to these questions could help you in deciding the type of mortgage rate you should choose when applying for a loan.

You also will want to know your credit score before you apply, as you need a certain score in order to qualify for a loan. Some loans require a score of at least 660, while others may be able be approved with a credit score as low as 580. However, the greater your score, the better rate you can qualify for when applying.

Are you ready to apply for a home mortgage? Contact us today to see how we can help!