When it comes to financing a new home, knowing the ins and outs of the mortgage game is highly important. Following these tips is a great start along the path to buying a new home:
Make Sure Your Credit Is in Order
A high credit score can earn you a low-interest rate on your mortgage. On the flip side of that, if your credit score is low, it may be hard to finance a new home. Paying off all your bills, keeping current with credit cards and other loans, and lengthening your credit history can all help improve your credit score.
Don’t Buy a House You Can’t Afford
Financing a house that is out of your price range is a bad idea for multiple reasons. Use a mortgage calculator to figure out what kind of a house you can afford. Normally, a house payment is about 30% of your take home salary.
Use a Professional
Using a professional mortgage lender offers many advantages. The lender knows for which programs you qualify for, special first-time home buyer programs, and government tax breaks. Mortgage companies also frequently have good relationships with real estate brokers and access to all kinds of home listings that aren’t accessible to the general public.
Have Your Down Payment Ready
Most mortgages require a down payment, and a solid one to make is between 15% and 20%. The more you put down at closing, the lower your monthly payments will be. By putting 20% down, oftentimes you can also avoid having to pay mortgage insurance.
Legend Homes has been building new homes in Houston for over 20 years. If you’re looking for a new home, new home construction, or move-in ready home in Houston, call us today at (888) 380-5708.