A home purchase is often a tricky process. This is why you must be highly critical in your home buying journey and purchase decision if you want to acquire your dream home. Even if you have the money or mortgage lenders are readily available, it doesn’t necessarily mean that you should immediately take the plunge. There are a few considerations to make to increase your chance of buying a residential property and getting the right one.

Guide to Boost Your Purchasing Power

If you’re a first-time homebuyer, here are five ways to boost your purchasing power:

1. Settle your existing debt(s). The initial step to take is to pay off your debts before you decide on buying a house. This is because it doesn’t make sense to get a property if you’re still indebted. The last thing you’ll ever want to happen is to have all your debts spiral out of control and get you into the bottomless financial pit. Even if you consider getting a mortgage, your chance of getting approved will be slim if lenders determine that you have unpaid debts.
2. Improve your credit standing. It’s best to look at your credit report and assess your credit standing first. That alone will give you an idea about whether or not it’s the right time to consider buying a house. If you have a relatively low credit score, you should first build your credit standing over several months or years. Even if you’re going to get a mortgage to finance your house, lenders will check your credit history before deciding whether or not to lend you money.
3. Prepare your down payment. Another important consideration is to save money for the down payment, particularly if you’ll opt for a conventional loan. Keep in mind that most banks or lending institutions will require a 12-percent down payment. However, suppose you are qualified to obtain a non-conventional mortgage such as the Federal Housing Administration (FHA), Veterans Administration (VA), or the United States Department of Agriculture (USDA) loans. In that case, you won’t have a problem with your down payment.
4. Get a mortgage pre-approval. Once you have factored in all those mentioned above, you should get a mortgage pre-approval before searching for a potential property. As such, be sure to shop around for prospective lenders, compare their offers, and settle for the most suited one for you. Not only should you consider the interest rate alone, but you’ll also have to consider various factors, such as the loan term, escrow account (for taxes and insurance), and the total monthly contractual payment (MCP). If you plan to pay for the entire house out of your own pocket, only then you won’t need to get a pre-approval.
5. Be highly selective in buying a property. At this juncture, remember that you can look for potential residential properties with a real estate agent’s help. Once you’ve been pre-approved for a mortgage, you will be more confident in finding a property that will be covered by the money you receive. However, always remember to be highly critical and selective of your property purchase by doing your homework, having property viewings, conducting home inspections, and allowing your realtor to negotiate for a better deal. All these steps will increase your buying power without compromising your family’s needs!

Buy a Home in Roseville with Steelman Mortgages

A home purchase is one of the best decisions you’ll ever make in your life. Whether you plan to get a mortgage to finance your house or pay it with your own money, be sure to consider all the practical tips mentioned above to increase your buying power. With all these in mind, you’ll end up buying the dream house that you and your family deserve! We’re a mortgage broker in Roseville that helps individuals find the right home loan, whether buying a new house or refinancing a mortgage. If you’re looking for a home loan to help finance your home purchase, get in touch with us today at (916) 847-7263 to schedule an appointment with our loan officers!

The journey you take to own your own home may seem like a long one. However, once you close the deal, the feeling of fulfillment will be like no other. As you and your lender finalize your loan agreement, you may be all but jumping for joy with excitement and anticipation. However, before you affix your signature and set it all in stone, there are specific questions you need to ask your lender first. Keep in mind that a mortgage is something that you will be paying off for a while, and it will pay to be sure about all the nitty-gritty details before you make everything final.

Burning Questions to Ask Your Lender Before Closing

1. What kind of mortgages do I qualify for? The first question you should ask your lender is this. Ask them what kind of home loans they have available and which ones you qualify for. They will be able to explain the best options available that will best meet your needs. If you have questions about FHA loans, jumbo loans, reverse mortgages, or any other type of loan, they can give you a detailed explanation about each one. These professionals will also be happy to explain the benefits and downsides of each loan option and help you make a decision as to which loan will serve you best.
2. How long does the entire application process take? It is a good idea to ask about how long the application process will take. Getting an idea about this timeframe will help you plan for all the other aspects that you need to consider when it comes to buying a home. Most loans may take up to 51 days, depending on the type of loan and the specifics about the client.
3. What are the fees I need to pay? To ensure that you have enough budget to take care of all the fees, it is best for you to ask about the fees you will need to pay during the application process. By doing this, you will be able to prepare enough funds to cover all the fees of the application process. You may also need to pay appraisal fees, home inspection fees, and other specific fees that your lender may be able to advise you about.
4. Will my rate change during the life of my mortgage? Depending on the type of loan you choose, your interest rate may change during the course of your mortgage term. For you to be sure about this, it is important that you clarify it with the lender. If you are leaning toward a certain preference, it is also a good idea to let them know about this.
5. Can I get an estimate on my monthly payments? Once you get past the mortgage prequalification stage, your lender will most likely be able to make a ballpark estimate about how much your monthly payments are going to be. Knowing this rough estimate will help you anticipate how your monthly budget is going to look like when you will be repaying your mortgage.

Homebuying in Roseville with Steelman Mortgages

You may have a lot of questions on your mind, and we hope that this article was able to answer some of them. Applying for a mortgage may seem like a tedious task, and it may get confusing at times. That is why it helps to have your questions answered by an expert in the field. If you still have lingering questions that were not answered in this article, going in for a consultation with a mortgage specialist will help you get all the answers you need. Remember that it is important that you understand everything that your mortgage entails before you sign anything.

Get expert advice about your mortgage at Steelman Mortgages! We offer everything from conventional mortgages to jumbo mortgage loans. Contact us at (916) 847-7263 if you are a first-time home buyer in Roseville, and let them give you the home loan you need.