An interesting article in aol.com highlights various pointers that young homebuyers looking for mortgages need to be aware of. Getting a mortgage under normal circumstances can be hard enough, but today’s current conditions where inventory levels are often low and credit conditions are tight can make things even trickier.
In addition first-time buyers face additional pressures as many have huge student loans that need to be factored in when calculating the amount that can be borrowed, and the jobs market is still quite weak. The article suggests that young homebuyers looking to purchase their first property should try to come up with a viable financial plan, and that meeting with a mortgage adviser could be a very good idea as they can create a workable strategy for purchasing a home. Even though it can be difficult to save up for a down payment, especially for anyone who does have extensive student loans experts feel it’s still not impossible, and that proper education over finances, combined with information about the local market can bring about success.
Every homeowner knows that purchasing a property does require planning, and most people have to make sacrifices in order to afford it. If you are a first-time buyer, just because you might be able to get a loan, doesn’t necessarily mean that you have to buy a home right now. Purchasing a home at the right time is just as important, and buyers have to be prepared to cover maintenance costs as well as mortgage repayments, and extras such as insurance and even home decor can add up to a lot.
Would-be homeowners need to identify the area in which they want to live, and it’s important to get this right. It’s been estimated that the average home buyer will need to spend approximately 7 years in the home just to recuperate the moving and closing costs. Anyone looking to spend less will need to purchase their home very carefully in a market that is experiencing sustained price increases.
The next thing to consider is whether or not you can provide all the necessary paperwork to verify your income, and it helps to get pre-qualified as this will provide set limits. Any credit card debt and student loan debt is taken into account, and those with huge student loans are being advised to consolidate them and to try to pay them off as quickly as possible. Doing so is likely to be difficult, but could help you get a mortgage.
The article continues in some detail highlighting other important points when considering purchasing a first-time, and you can read more here.