businesswomwanPlanning to buy a home? Getting a mortgage is what you should consider first. The rates may have risen, but they are still historically low. Buy now and you will still have an edge. But before you do so, you should know the mortgage rules.

Evaluate your credit score

Is your credit score high or are you towards the lower end? Evaluating this score is your first step because it will give you an idea of the loan you can get or if you can get a loan.  Obtain your credit report and go through it. If you find errors, notify the responsible agencies and have them amended.

If your score is around 750, you can enjoy rates of around 4%. If your score is somewhere around 620 to 639, you will be offered a rate that is above 5%. If your score is below this range, you should probably improve it and then think about becoming a homeowner.

Select a lender

A reputed real estate agent said that buyers should shop for a mortgage first before they shop for a home. This will ascertain that you select a home which you will be able to afford even later on.  Search for a lender that can offer you a better rate so that you have to pay a lower amount as interest.

Get a pre-approval certificate

Lenders offer you both a pre-qualification and a pre-approval certificate. A reputed real estate agent claims that the latter is what buyers should get. Pre-qualification is just a review of your credit rating and the lender cannot accurately give you a loan amount. Pre-approval is more comprehensive and everything from your credit report to your income is evaluated. Accordingly, you are offered a loan amount and a mortgage rate.

Pre-approval also gives you an edge over other buyers, but there is just one problem. A lender told us that they are not providing pre-approvals these days as much as they did in the past. Still, try your luck and you may just get it.

Now comes the home

With the mortgage process done, you can easily search for homes and then buy one which you not only like but can afford as well.

Source: www.realestate.msn.com

Courtland Building Company would love to help you plan your green home, call us today: (281) 932-4494

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