We all know how difficult it can be when purchasing a new home. From getting the best financing to finding the right home that will not only fulfill our needs today but also in the future. The fact is that you can alleviate some of the headaches by doing some research up front and eliminate the need to do so later or have any issues arise that should have been caught during the early stages. This article from Boulevard 88 floor plans will point out those steps that you can take to make the whole process easier to manage and a little less burdensome during the purchase and mortgage application process.
The first thing you need to do is search the local area for the banks with the lowest rates. Do not assume for one minute that the best deals are with the larger banks as they are actually the last ones you want to look at. The best place to start is with smaller local banks and credit unions. These offer the lowest rates and are easier to get a loan through as they prefer keeping their money and assets in the community. The larger banks, while you can certainly get approved, often look out for their interests more than the consumer after the housing crash so you can expect slightly higher rates going through them.
One thing you need to do is to obtain a free copy of your credit report from all three agencies. These are the ones the government stated you had a right to for free once a year. These do not include your credit score but you will be able to see if you have any damaging items on your report that need to be cleared up before you apply for the mortgage. Don’t sign up for credit reports that include your score until you look at your free annual copy. If you are clean credit-wise, you can get the score from the bank when you apply for the mortgage.
You also need to be prepared to know how much you can actually afford on a new home. Write down all of your expenses, rounding them up to be safe, and see how much you can reasonably afford. You also need to account for money that will be put aside for emergency use, like medical emergencies. This will give you a nice buffer financially to evaluate the amount you can spare for a down payment or any other costs associated with purchasing your home.
Always estimate on the high end how much you will pay in taxes or homeowners insurance as these will always increase over the years due to several factors beyond your control. It is far better to tack on an extra hundred to the estimations to ensure that the annual increases do not cause an issue by tightening up your spendable cash.
Purchasing your new home should always be a positive experience and following these suggestions will ensure that will be the case when you are ready to make your move. Stay positive and have all your ducks in order and before long, you will have a home that you and your family will cherish for a long time.