Buying a home – at least on the financial end of things – can be a confusing process. Here’s what you need to know about mortgages before you start applying for yours.
Mortgage Basics Every Buyer Needs to Know
When you apply for a mortgage, you have to do your homework. Consider this a great start!
- The higher your credit score is, the more favorably lenders look at you
- Don’t make any big financial changes before you buy a home
- You absolutely need preapproval
The higher your credit score is, the more favorably lenders will look at you when they’re deciding whether to let you borrow. A solid credit score shows lenders that you’re efficient at managing your debt, making payments and meeting your other obligations.
When you have a decent credit score, lenders can feel comfortable that you’re likely to pay them back.
Big Financial Changes
Even a big purchase – like a TV set – can derail your dreams of home ownership. Well, it’s not that dramatic… but when you’re trying to improve your credit score to get favorable terms on a mortgage loan, you don’t want to make any major purchases. They can throw off the calculations your lender has done and hold up the closing process.
Before you start your house-hunt, you need preapproval from a lender. A preapproval does two things: One, it shows you just how much house you can afford in your current financial situation, and two, it shows sellers that you’re really serious and able to buy when you make an offer.
Are You Buying a Home Along 30A?
If you’re thinking about buying a home for sale on 30A, we can help you. Call us at 850-213-3048 to tell us what you’re looking for – we can help you find it.
In the meantime, check out all our listings or get specific with these links: