Whether it’s your first time gearing up to apply for a home loan, or you’re a seasoned veteran in the home loan process, there are some very important things to consider before you make the big move. Ultimately though, the home loan and relocation process should be nothing short of a positive experience. You’re getting set up with a new home, after all! Here are some crucial things to consider if you’re applying for that home loan for the first time.
1. Pay every one of those bills on time.
We get it. Paying bills is no fun. It’s a necessary part of life that we’re all subjected to, and sometimes we’d just as much like to play pretend, and ignore their existence altogether. But alas, you’ve got to pay those bills, and you’ve got to do it on time. When you’re applying for a home loan, the last thing that you want to get in your way is a credit score that’s taken multiple hits from missing monthly payments on various bills. Just a few late payments can weigh your credit score down, and ultimately end up impeding your ability to get approved for a home loan. Also, even after your home loan has been approved, it’s important to continue making monthly payments on various bills, on time, otherwise, your credit score could take an unwanted hit which could affect your monthly mortgage payment, interest rates, and eventual loan amount.
2. Be mindful of employment changes.
By no means is it the end of the world if you’ve been hopping around jobs. Maybe you’re just someone who has been steadily ascending the career ladder, and you’ve been promoted, or headhunted by other promising job opportunities. The point here is that you want to show your lender that you’ve got job stability and that you aren’t a liability for paying off that loan.
3. Do your research.
Research is essential to stay on top of things during the home loan application process. You want to make sure that you’re getting the best home loan rates on your mortgage loan after all! It’s important that you take the time to learn about the difference between things like a fixed-rate, adjustable-rate mortgage, FHA, and VA home loans. Without that knowledge in your back pocket, you might end up making a decision that you come to regret later on down the road. You’d also be well advised to get an updated credit report to check in and see where you stand with those credit bureaus.
4. See what’s in your budget.
At this point in the game, you need to determine what kind of money you can afford to spend on a home. Most budget planners suggest putting aside 28 percent of your post-tax income for the house payments, which includes your homeowner’s insurance and property tax. So an example of calculating this would be if your income is $50,000, then you multiply that by .28, and end up with $14,000. That’d come out to $1,166 a month. Every person’s life situation will be different. It’s just of the utmost importance that you find out what kind of home loan and monthly payment setup will work best for you before you become a home buyer.
5. Be picky with your choices.
The importance of choosing carefully can’t be expressed enough. Just like it was crucial to do your research on loan options, it’s also important to research those lenders as well. You could spend a month in the process to get a mortgage, and then end up with 30 years of making monthly payments on it. Some of the things to look for in a lender are what type of loan options you have available (also the life of the loan), what kinds of rates or fees they have, and of course, the actual reputation of the lender. You don’t want to go into business and take out a 30-year loan with some shady lender who has close to nothing in terms of years of experience, and a terrible reputation for screwing people over.
6. Consider your relocation plans.
Relocation is an exciting process for any family that requires sufficient planning to be executed successfully. Maybe you’re making a local move, but still unsure how you’re going to get all that stuff out of the old place, and into the new one. If so, you’ve got great options for movers in Maryland. These guys offer free quotes, free stretch-wrapping of furniture, full-service packing, fragile-only packing, custom crating at $100, and short and long-term storage options for low rates. They’re so great that when move day arrives, and you’d normally be stress sweating about the process of relocation during Covid-19, you’ll instead find yourself with relaxed shoulders, and sweet peace of mind. They even provide a move coordinator to ease all of your worries and take care of those precious belongings with nothing short of admirable caution as well. Getting someone like 495 local movers to help you on move day is literally always a good idea. It’s just too much to handle by yourself.