Buying a home is the biggest financial decision most people will make in their lives – and choosing a mortgage lender goes hand in hand with that choice. Because it’s a long-term commitment that has a daily impact, it’s crucial not to go in blindly. With the sheer amount of options available today, you will want to consider numerous options to simplify the process. Having the correct knowledge can save you thousands of dollars.
I often advise my clients to understand their emotional needs and create a new path to ease their “money nerve” before making critical financial decisions. It is essential to map out best choices to create your long-term strategy. If you are ready to buy a home this summer, I have some resources for you.
While spring is traditionally the busiest time for real estate sales, this summer could prove to be the hottest time for buying a home, according to a real estate economist at Florida Atlantic University. “From a buyer’s perspective you have more choice, but you’re also competing against far more buyers,” says Ken Johnson, Ph.D., a professor of finance and associate dean at FAU’s College of Business, who also has sold hundreds of homes as a real estate broker. “Sellers are also looking to sell over the summer, particularly if they have children and want to get a deal done before school starts again.”
First Steps for Home Buying
Too many potential buyers find the house and only then worry about financials. That might be why they’re still potential buyers. Instead, first take an X-ray of your financial life, says Eric Tyson, co-author of “Home Buying for Dummies.”
Put exact numbers on the figures you’ve probably been estimating up to now:
— What do you make every month?
— How much do you spend every month?
— How much do you have in your down payment account?
— What are your assets and liabilities?
— How much are you carrying in debt — credit card and otherwise?
— What significant expenses or windfalls (a raise or bonus) do you expect in the next six months or year?
— What’s your ideal monthly house payment?
Selecting The Top-Rated Mortgage Companies
The team at Simple Dollar spent six weeks analyzing 181 mortgage companies and found five options that met their standards. The team personally tested the finalists, evaluated customer service and analyzed rates and fees. Need advice deciding between government-backed loans versus private loans, and adjustable rates versus fixed rates? If you are ready to take the next step of buying a home, this informative guide will assist you in the application process: http://www.thesimpledollar.com/best-mortgage-lenders/
Find a collection of budgeting tools, financial advice, numerous guides, and creative, frugal ideas via The Money Nerve HERE.
Happy House Hunting!