Finance Matters: How to Treat Your Very First Mortgage



Applying for a mortgage will most likely be one of the biggest financial decisions you ever make. That means it will be prudent to spend quite a bit of time exploring your options so that you can be sure you get the best possible rates. Here are a few steps you can take to find the perfect home loan and continue to build your credit in the coming years.

Remain Financially Stable

While every lending company is slightly different, most loan agents want to see a sense of stability in an individual. In addition to maintaining your credit score, you need to stay at your job for as long as possible. Those who continuously move to new cities and change careers are generally seen as the most unstable, and they might not get the best rates. Loan officers will also take a look at your bank account to make sure that you can live within your means and are not overspending each month.

Work With a Local Mortgage Company

It might be tempting to apply for a loan with a larger corporation, but you will not always get the best deal that way. A local mortgage company, such as Premium Mortgage Corp, will typically have loan officers who are much more familiar with the nearby real estate market. Instead of offering a blanket sum, they can tailor your mortgage to match the prices of nearby houses instead of looking at national real estate trends.

Aggressively Attack Your Debt

One of the best ways to make yourself more attractive to lenders is to start working on your current debt as much as possible. While you might not have to completely pay off your student loans or car, going beyond the minimum monthly payments will look excellent on your record. Those who have multiple large loans should try to finish at least one or two off so they have fewer open accounts on their credit score.

Start Your Rainy Day Fund Today

Every homeowner should have a robust emergency fund at all times. Families do not always realize just how many things can go wrong in a home, and those without a rainy day fund could find themselves struggling to make ends meet. Many experts agree that homeowners should have at least six months-worth of take-home pay ready to cover emergency repairs, insurance deductibles, or medical bills.

Starting the process of purchasing your first home can be exciting, but there are also quite a few risks that you must prepare yourself for well before you get the keys.

Allison Halliday About Allison Halliday

Allison Halliday is a Realty Biz News contributing writer. She handles International Real Estate and is a seasoned blogger.

Sign up Now and get our guide on Facebook for Real Estate Professionals for Free

Sign up to the Realty Biz News mailing list to get updates from our site and also get our guide to Facebook marketing for Real Estate professionals for free