When taking out a home loan, you have a lot of details to remember, and sometimes the process feels like it can go rather quickly. Whether you’re new to purchasing a home or you want some advice on mortgages before you start home shopping, let our crew at GVC Mortgage help you out. We have pulled together this list of tips for getting a home loan that should help you enter into the process a little more confident and informed.
1. Know what you can afford.
Sit down and revisit your budget. Many people qualify for a larger mortgage than they can actually afford in terms of monthly expenditures. So, break down your expenses, and make sure you don’t buy more house than you can pay for long-term. You can also use our mortgage calculator to understand what a mortgage looks like in terms of monthly expenses.
2. Gather together your documentation.
The most time-consuming part of getting a loan (for the buyer) is making sure you have all the documentation ready for your loan representative. To avoid scrambling at the last minute, put together a folder (whether physically or electronically) with all the required paperwork. If you’re not sure what you need, be sure to ask your loan representative for a list.
3. Get pre-approved.
The real-estate market can move quickly, and you don’t want to be waylaid by securing your financing. We recommend that you go through our pre-approval process so that when you find the right home, we can finalize your paperwork and secure your interest rate in a timely manner.
4. Compare loan types.
Do you know which mortgages for which you qualify? Many people don’t realize that they have several loan options out there. It’s in your best interest to do your homework and talk to a loan specialist to understand your options and the individual loan requirements.
5. Make sure you plan ahead for closing costs.
When purchasing a home, many buyers either aren’t aware of or forget that they will most likely be responsible for closing costs. According to Bankrate, closing costs typically include “origination fees charged by the lender, title and settlement fees, taxes and prepaid items like homeowners’ insurance or homeowners’ association fees.” Your lender and/or realtor can help you know how much you can expect to pay in closing costs.
To find out more home-loan tips or to get a mortgage, contact GVC Mortgage of Carmel, IN, today at (317) 564-4906. Our loan professionals can walk you through the loan process and help you understand all your options.
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