Getting Your First Home Loan Without Losing Your Mind
Buying your first home is one of life’s most exciting milestones! Instead of paying rent to help someone else pay their mortgage, you are going to put your money to work for you by investing in a home.
Of course, most of us do not have hundreds of thousands of extra dollars lying around for such a significant investment, so we need proper financing before proceeding with a home purchase. Unfortunately, the process of getting this loan is often more intimidating to people than finding the right home and moving into it.
Getting a home loan does require some work, but it does not have to make you miserable or hold up your search for your dream home when you keep this advice in mind.
Get Your Finances in Order
Before you make an application for a loan, and especially a credit facility as significant as a housing loan, you want to get an accurate picture of your finances. It will help you know how much you can afford and how much you are comfortable spending.
As you compile your financial information, consider the following aspects:
Your current salary and benefits
Credit card debt
Student loan debt
Auto loan debt
Other miscellaneous debt
Your typical monthly expenses
Amount of money in short-term savings
Amount of money in long-term savings, such as retirement accounts
Once you have a clearer picture of what you make, what you owe, and how much you have saved, you can have a better idea about what the financial aspect of homeownership will look like for you.
Work with a Quality Professional
Getting a home loan can be confusing, so you do not want to go through that process alone. There are professionals available to help you who take care of loans and mortgages every day. Take advantage of their expertise, and do not be afraid to ask plenty of questions along the way.
If you are not sure where to find financial guidance, your realtor can usually provide excellent recommendations. Realtors know that home buying is not going to take place without the right loans, so they know how to connect you with people who can get it done for you.
Getting a home loan requires some time and effort, but it is all worth it when you are given the keys to your first home, and you walk onto a property that you officially own!