Buying a new home (certainly at least attempting to) is one of the biggest decision made in one’s lifetime.
Whether you are doing it with a significant other or on your own, so much goes into the process.
From the financial requirements to the allotted time needed to fill out various papers, trying to purchase a new residence can seem a little overwhelming at times.
That being the case, consumers should not be held back from pursuing something that means so much to them.
While the process may seem a little daunting at times, making the call to buy a new home can end up being one of the best decisions you ever make.
Securing the Best Loan
In order to acquire the best loan for your new home purchasing needs, myriad of factors come into play.
One factor that comes to the surface immediately is approximately how much of a loan you will require.
If you will require a substantial loan to meet your needs, you can research a jumbo mortgage.
With a jumbo mortgage in your sights, you can increase the odds of receiving the financial assistance required to start you on the road to acquiring a higher priced residence.
A jumbo mortgage offers consumers a home loan (minus an exorbitant down payment) when the amount surpasses typically regulated loan standards. In most instances, that amount is $417,000 ($625,000 in a few parts of the country).
As many potential homebuyers can attest to in today’s real estate market, $417,000 is a drop in the bucket when it comes to some market prices.
For instance, a nice three-bedroom/two-bath home selling for several hundred thousand dollars in a suburb of Pittsburgh could easily cost someone double that amount (or even higher) in parts of Southern California.
As you look to obtain the home loan you’re best in need of, remember these tips:
- Avoid getting in over your head – Whether you are a first-time homebuyer or someone having traveled down this road before, you know how easy it can be to accrue a substantial amount of financial debt in such a short period of time. So that you avoid doing that, be smart about how you’re going to not only spend money now, but pay off any loan down the road you might receive in the short term. While you are hopefully planning on spending many years in the home you look to acquire, you want to avoid acquiring major debt, especially if you are young;
- Your credit record matters – Are you one of those people known to blow off the importance of your credit record? As it turns out, more and more businesses are spending more time reviewing consumer credit reports than ever before. In doing so, you do not want your credit report looking like it has major red flags on it. Even though you may have run into some financial issues in recent times (major car repairs, sizable medical bills etc.), do your best not to dump everything on one or more credit cards. Also be sure you are not regularly opening and closing out accounts, another issue which can get you in trouble with creditors;
- Where to turn for a loan? – Lastly, where you turn to for a home loan is as important as anything else in the process. In trying to buy a new home, you want to get the financial piece of the puzzle right the first time around, so choose wisely. Even though you may not qualify for this loan or that loan, chances are you will apply for your fair share of loans over time. In doing so, research (both online and through word-of-mouth) a number of home loan providers. See which ones have the track record and customer support of years and years of solid business dealings. The last thing you want (or need for that matter) is dealing with a loan provider where anxiety and ultimately problems are the rule of the day.
If the near future will find you seeking a new residence, know that even a small loan can turn into a big deal.
Do your homework as to where you will be best served when as it relates to coming home to the best loan available.