So, you’ve found your dream home and are ready to get a mortgage loan. A mortgage loan brings a hefty responsibility, so read on before you look for a mortgage loan in Maryville:
Upfront expenses
Many first-time home buyers believe that the right time to buy property is when they finally save enough for a down payment. Others believe that earning enough to pay a monthly mortgage means it is time to buy a home. That’s not exactly true. While having a down payment helps because it lessens your monthly mortgage and could mean a shorter loan term, there are a lot of upfront costs that could take a chunk out of your budget before you even start paying for your mortgage. According to Money Facts, mortgage arrangement fees, valuations, and surveys are just among the costs you’ll have to pay.
Credit scores
Your credit score could have a huge impact on your interest rate. If yours is high or good, you could qualify for a lower interest rate with ease. However, if your credit scores are bad, that means higher interest rates for you. You could even have problems getting your loan approved. You would be well-advised to fix your finances and ensuing credit scores before undertaking the mortgage process.
Income
When it comes to your mortgage loan in Maryville, a steady source of income is vital in order to be approved. If you’re a freelancer, that could mean having a hard time qualifying for a loan. However, your stock dividends, as well as alimony payments and even child support, could count as your monthly income so keep that in mind.
Debt
Are you still paying off your college loans? Have a huge credit card bill you haven’t settled yet? Only 36 percent of your income should go towards your bills and housing expenses. You still need to be able to sock away a few for a rainy day and have enough left over for other expenses. Want a bit more wiggle room? Pay off all your debt before you start with a loan.
Savings
Think of this as your buffer. In case you get laid off tomorrow or get into an accident, missing work and the paychecks that follow, a solid savings could provide you with what you need even if you aren’t working. Make sure you have enough funds so your bills—and that includes your mortgage payments—will be covered.
Know more about how to get a mortgage loan in Maryville, talk to us. We can help you find the right plan for you today.
