These Mortgage Tips will Streamline the Process
You have made the commitment to buying a home. Before you start your house hunting, whether you are buying an existing stick-built home, or buying a new manufactured home from Big Sky Homes in Billings, you need to make sure that you can get a loan for the amount you need. Review these mortgage tips so when the time comes you can make a decision to buy a home right away without any delays.
Know Your Credit Score
You may think that since you have paid all of your bills on time that you have a perfect credit score. Unfortunately, it doesn’t work that way. If you haven’t been using credit for a long period of time, then you will have a lower score than those who have a longer history. In addition, if you have never pulled a credit report, then you need to do that right away. There’s a chance you have been a victim of identity theft and you don’t know it.
Head over to annualcreditreport.com and get your report. This site is the only one approved by the US Government and is 100% free.
Get Pre-Approved Before House Hunting
Before you start your house hunting trip, make sure that you know how much home you can actually afford. And remember, just because you are approved for one amount doesn’t mean that’s what you can afford! You have to take into account taxes, insurance, utilities, repairs, mishaps, and a variety of other factors. Take a look at our post from last week to see how much goes into your home each month and plan accordingly.
Have a Down Payment Saved Up
There are ways to buy a home with nothing down. However, when you do that you set yourself up with a lot of risk, and often you will end up paying more interest for your loan. You will want to save up 5% to 25% of the purchase cost so that you can make sure you start out with great equity. Keep in mind that if you put less than 20% down, you will have to pay PMI costs.
Don’t forget costs for a home inspection, appraisal, fees, and closing costs.
Don’t Make any Changes!
When you are going through the loan process, the biggest thing that can derail your mortgage approval is a major change. Are you looking at a new job? Put it off as long as possible so the loan is complete before you make that change. Are you looking at a big purchase like a vehicle or something else that requires credit? Determine if you want the car or the home more, because likely one will make you ineligible for the other. Anything that will change your income, credit, or savings needs to be put off until after your mortgage loan is all done.
Have Your Finance Documents in Order
When you are working with a lending agent, you will want to have your finances in order before you go meet with them. Each lender is a little bit different, but here are a few things that you need to get together before heading into their office.
- W-2 forms to prove income
- Last 2 (or more) pay stubs
- Tax returns for at least 2 years
- Current bank statements (for all accounts, not just checking)
Because each lender is a little different, you will want to make sure that you ask them what else they will be requiring before you sit down. The better prepared you are, the faster the process will go.
Come Shop for an Affordable Home at Big Sky Homes
Did you follow these mortgage tips and now you are pre-approved for a mortgage? Great! Now it’s time to find the perfect house. Before you drive all over the city in search of something that’s ok, come see what we have to offer. There’s a good chance that we can get you into a brand new home, that’s exactly the right size, with all of the modern amenities, for less than you thought possible.
Lower your mortgage amount, put a higher percentage down, and enjoy stress free living in an affordable modular home from Big Sky Homes in Billings. Come see us at 750 Parkway Lane to learn more.