Owning your first home could be one of the best accomplishments you can have in your early adult life. After all, it is not easy to own one; it takes a lot of hard work and commitment. If you have been planning or you want to start planning to have your own house, you need to know the essentials.
There are many different types of mortgage loans San Antonio, all you have to do is choose wisely which one is right for you. A real estate broker can help you with that, or if not, you can ask lenders to explain what you need to know. But one thing is sure; lenders have the same basic requirements; they may only vary slightly.
Here are the things you need to do when choosing your first home so everything will go smoothly and you will have no problem in the future.
Decide on a Budget
First of all, you need to decide on how much you are willing to spend on your house as a whole. It includes the overall cost of the property, interest and closing costs. You also have to take into consideration your current source of income and your expenses. For a better assessment, you can use an online loan calculator. It can give you a rough estimate of how much should be the range for you based on your situation. Once you have set a budget and you start house shopping, try to stay within your field as much as possible. Going beyond may get you approval from the lender, but it does not guarantee your payments in the future.
Save Enough Down Payment
Once you have decided or calculated on the price of the house, you need to start saving for a down payment. If you have already begun collecting before then right for you, you will only need to complete it. On the other hand, if you have not yet started then better double your time saving up. Most lenders require at least twenty percent of the cost of the house for your down payment. Other lenders might need more wherein there are others that will require less. But as much as possible, we strongly recommend you to pay as much as you can in down payment so you will have a lower principal balance left.
Pay Off Debts
Before you take out another loan, it is best if you try to pay off existing loans. If there is more than one, start with the highest interest first. If paying off is not possible, then bring down the balance as much as you can so you will not have a hard time paying it together with your upcoming mortgage loan.
Have a Stable Source of Income
An important factor in getting a mortgage loan is your income. You need to have a stable source of income that would suffice to make your monthly payments as well as your expenses. If you are working for a company, you are required to be with one for at least two years. Some members are lenient though and allow you to have different companies over the last two years, but it has to be in the same industry.