The process of buying a new home can be a difficult task, but once you’ve made the commitment, it’ll be well worth it in the end. Unfortunately, many people are unsure where to start when it comes to purchasing a house. Have no fear, GVC Mortgage is here to help you get started. If you start using these tips, you’ll be well on your way to securing that mortgage.
Decide What You Can Afford
To get started, you’ll need to have a decision made about how much house you can actually afford. Sit down and look at the selling price of homes in areas you’re interested in along with the square footage you’ll need. Once that’s done, you’ll have a solid number to work towards making it easier to achieve your goal. Be sure to include all pricing factors like insurance, taxes, fees, and utilities. A good rule to follow is that your mortgage payment should be roughly 25% of your monthly income, and certainly not more than 28%.
Consider Your Loan Options
There are several mortgage options for you to choose from based on your situation. There are FHA loans, conventional loans, and special loan types if you’re a veteran or a doctor for example. There are many factors to decide upon, like fixed or adjustable rates, when making this decision, so it’s best to work with an experienced mortgage lender.
Get Your Financials in Order
In a lot of cases, this is a great time to work with a financial advisor who can help you navigate your personal situation. Generally speaking, you’ll want your debt to be in order first. Your debts can greatly affect your credit score and how large of a mortgage you’ll qualify for. Once your debts are paid down and in a good place, it’s time to start saving for a down payment. If possible, consider reducing your monthly expenses by 10% and placing that money in savings.
Located in Carmel, IN, GVC Mortgage has professional consultants on staff to help you get into your dream home. When you’re ready to begin, contact us at (317) 564-4906 and we’ll walk you through the home-buying process.