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- Stay on top of your credit: Little is more embarrassing than having to be told by a lender that you have bad things on your credit report(s) that you knew absolutely nothing about. You might get caught in denial, which makes things look even more suspicious, or maybe you are legitimately duped and a victim of identity theft. Point being, it is wise to know your own credit score and what is on your credit report months in advance of actually applying for a home loan with a lender. This knowledge will help you to 'pre-shop' the homes you are interested in, because you will get a better idea of what you can afford. In addition, if you get your credit score far enough in advance and find some issues with it, you can take the time to correct them in order to maximize the loan offerings you will receive from lenders.
- Save 20% down payment: Sounds like a lot for some homes which is perfectly understandable, but you should realize that saving up a large down payment for a home not only reduces the overall cost of your mortgage and saves you possibly thousands of dollars over the life of the loan, but it also is more evidence to convince a lender that you are creditworthy for the mortgage you seek.
- Consider your budget: When you are thinking about buying a home, don't forget all of the extras that come with owing one that you don't have to put up to as a renter - homeowner's insurance, repairs, and general maintenance (you never worried about a lawnmower or pest control prices before). A good idea is to consider the price of the home you want to buy, estimate its mortgage payments and then add 5%, and build a budget around that amount. Try to live on it for awhile, even if it is more expensive than what you're used to - the extra money you save can go toward your home's down payment later.
- Research lenders: This is something that very few people actually think to do - who researches a bank for a 30 year loan? Most important on everyone's mind is whether or not they will approve you for the loan and who offers the best rates and conditions. There is much more to it than that, however, you should research what others have to say about the lender and their customer service experiences. This way, if more than one lender offers you basically the same quote, you can know which to choose from.
- Get multiple quotes: Don't settle for your first offer. You may be able to do better. That's part of the beauty of MTMortgageLoans.com; rather than driving around from bank to bank all around town, you can get several quotes right there from the comfort of your own computer.
