The Basic Mortgage Tips for Home Buyers – by Vennessa Webb, Chicago area Realtor with Century 21 United, HomesfromtheWebb.com
People learn from experience. They make decisions based on the outcomes from their past choices. We are always looking to put ourselves in better situations. It is human nature to want to improve after each major decision. Unfortunately, there are no tests available to determine if you are ready to buy your next home.
Throughout your life you will order food thousands of times and purchase hundreds upon hundreds of shirts and sweaters. You may even own the average 15 cars over the years. However, the average American will only own five to six homes in their life. Based on current market conditions, people may live in their homes even longer. Needless to say, you don’t want to make a poor decision and choose the wrong home/neighborhood/mortgage. Few have enough experience buying homes to ensure they are always making the best choice for themselves and their families.
That is where I come in. Here are just a few helpful hints when making your next home purchase regarding mortgages. Mortgage Concerns – Make sure you are pre-approved for the mortgage payment you are comfortable before you begin your house search. You should not be obligated to anything and the banks you approach should offer this completely free. Take property taxes and homeowner’s insurance into consideration as these will be additional fees tacked to your monthly payment. Don’t only check with your own bank for the best rates, but local banks as well. Very often, local banks can pre-approve while you are on-site and give special regard for locals the same way they do for their own clients. For a basis, check out BankRate.com.
Whatever you think you are able to afford, even attempt to borrow even less. It is always best to prepare for the unexpected. Banks will often loan more than you will need. After all, it is your interest they will be collecting. In this roller-coaster economy, stability is not guaranteed with income. Don’t overextend yourself. At the same time, the more down payment you can put down initially, not only will you be covering a lower monthly payment, but it will lessen the chance of a bank asking for private mortgage insurance.
Always be cognizant of what you are signing. Many people choose to work with mortgage brokers opposed to banks, but realize they are obviously paid a percentage of whatever they can convince a new home buyer to sign.
These are just a few basic tips I give when helping my happy clients find their new homes. I am an advocate for my clients and that is just one reason I love being a Realtor in the Chicagoland area. If you have any specific questions or concerns regarding your next home search or sale, please do not hesitate to give me a call. . In future posts I will give tips for finding the house of your dreams, negotiating with the seller, and closings. Until then, don’t stop looking for Homes from the Webb.
