For the first-time home buyer, getting a mortgage sounds a little intimidating and confusing. Here are a few tips that may help you get a mortgage for less hassle and lower costs.
Determine how much you can afford based on your income and long-term debts. From here, figure out the maximum monthly payment you’re sure you can make. Buying too much can bury you chest-deep in debt, so make sure that your monthly payments are set at a comfortable amount. You can figure out this amount by using online mortgage calculators.
Make a budget and be aware of where your money goes. Find out how much you pay for your utilities, because buying a larger home means you’ll have to shell out more cash for utilities. Can you pay your bills on time while making payments for the mortgage? Is the home you want to buy in need of repairs or upgrades? Factor in these things while making your budget.
You’ll need to show documents before you can secure a mortgage, so gather things like tax returns, proof of current salary, assets, debts, etc.
Be aware about mortgage types and rates. The more you know about the types of loans available and the current rates, the more the negotiations will swing in your favor.