For most people getting a mortgage in East Central Indiana will be the biggest purchase of their entire lives. A home is not something you can purchase in a day. It takes months of preparation and collaboration between buyers, sellers, real estate agents, and banks.
There are some things that you should be doing when it comes to a mortgage, but there are also things that you should avoid. There can be so much conflicting information, so before you begin your journey to secure a mortgage for your dream home, make sure you know how to start. If you want more detailed information, check out this helpful article!
Mortgage Do’s
Get Preapproved
Make sure to get preapproved by your lender of choice. Preapproval will ensure that you are looking at houses within your budget. IT will make your real estate agent’s job much simpler so that they can show you your perfect home within your budget.
Learn More About Your Credit
Pro-tip, you can pull free credit reports from each of the credit bureaus. Pulling your credit reports will ensure that you understand the accounts on your credit reports and allowing you to dispute any information that may be inaccurate. This would be especially helpful to complete before your chosen lender looks at your credit score.
Make a Savings Plan
There tend to be some unexpected costs that can come along during while purchasing a home. It is important to keep a small nest egg in case of an emergency. Having a small savings will give you some peace of mind.
Keep Your Income Consistent
It is essential to keep your income consistent a couple of months before and during the mortgage process. Getting a mortgage in East Central Indiana is easier when you show a steady financial history. Mortgage lenders want to see a consistent income, so if you have recently switched jobs, you may want to wait a couple of months before going through the mortgage application process.
Ask All Questions
It is essential to know that you are not in this alone. Your mortgage lender is there to help you. So, make sure to ask all the questions on your mind. There is no such thing as too knowledgeable when it comes to understanding your mortgage. Getting a mortgage in East Central Indiana is easier when you understand all your options and have good partners working alongside you.
Mortgage Don’ts
House Shop Without a Realistic Budget
We know you are excited to get house shopping, but we would not suggest shopping without preapproval. When getting a mortgage in East Central Indiana, preapproval is essential. Because it helps you stay within your budget, many people think they know how much they can afford, but sometimes buyers are surprised by the amount they get preapproved for.
Open or Close Lines of Credit
It is important during the credit process to keep your credit score and accounts as steady as possible. That means to keep everything the same for a couple of months. Make sure to say no to any new credit cards. We also wouldn’t suggest closing any lines of credit. Keep that random store card for a couple more months to keep your credit consistent.
Make A Major Purchase
It may sound like a good idea to get a house and a car at the same time, but making any major purchases during the mortgage process can cause some significant problems. Avoid mattress or car shopping until you have finalized your home purchase!
Change Jobs During the Mortgage Purchase
We mentioned keeping your income steady, which means you shouldn’t change jobs during the mortgage process. This can complicate your situation, leading to some issues with your mortgage lender. They want to see a steady and consistent income.
Get Overwhelmed
The last thing you want to do during the mortgage process is get overwhelmed and feel like you are all alone. The mortgage lender and your real estate agent are there to help you through the process. There is no need to feel like you are alone. Getting a mortgage in East Central Indiana can be stressful, but you don’t need to have all the answers. Rely on those around you to help you make the best financial decision for you and your family.
Get More Information
There is so much to consider when you are buying a home, that is why you need an agent you can trust! Our expert realtors can lead you through the process. If you are interested in purchasing a home or selling a home in East Central Indiana, learn more about American Heritage Realty. We have been in operation since 1977, and we have the expertise and technology to help you buy a home or sell a home. Get to know us!