Spring has sprung and sunny days have begun. This time of year marks the start of the busy home buying season. If you are a potential home buyer looking to purchase a new home this spring, keep in mind it’s not just about finding the perfect property. It’s also about finding the perfect mortgage that is right for you. Learn how to increase your chances of moving into your dream home by summer time.
Before you start your home search with a real estate agent, the first step is to talk with a mortgage associate and get pre-approved for a mortgage. A mortgage associate will examine your financial situation to make sure that you pass all of the requirements to qualify for a mortgage. The mortgage associate will evaluate your income, employment, credit, debts, and assets. A pre-approval will also lock in an interest rate. If rates were to increase during the spring market, you would be protected until your rate hold expires.
A mortgage pre-approval will determine the price range of properties you can comfortably afford. This way you won’t fall in love with a home that is beyond your reach. This will help you narrow down your options and save you time. You will also be able to move more quickly with an offer once you find the right property. The spring home buying market is packed with other pre-approved buyers that you may be competing with. When sellers are filtering out prospective buyers, anyone with a mortgage pre-approval has a higher chance of having their offer accepted. A pre-approval shows strength and can instill confidence in the seller. It tells sellers that you are a serious house-hunter who isn’t going to delay the transaction.
Potential home buyers will attend dozens of showings and open houses before choosing the perfect home. So why walk into your bank and accept the first mortgage they offer you without doing any research? Buyers get excited about granite countertops and upgrades but getting proper mortgage options are just as important.
The spring market motivates lenders to stay competitive with their interest rates and special offers. Rates are important, but they should not be the deciding factor for your mortgage. You need to be aware of the mortgage features, as well as mortgage terms and conditions that could become costly down the road. Rates are just one part of the total borrowing cost. Other costs you should consider are fees, penalty calculations, prepayment restrictions, completely closed terms and portability restrictions. Working with a knowledgeable mortgage associate will help you determine the proper mortgage for you and your situation.
Buying a home this spring may be a challenge for some potential home buyers. If you follow these mortgage tips and receive expert advice from your real estate agent, the only thing you’ll have to worry about when summer comes is planning a fun backyard BBQ.