5 Tips for Financing Your New Home

5 Tips for Financing Your New Home

It seems like finding the right home can be the biggest challenge when you decide it’s time to move. Spending hours searching online for homes for sale in Greensboro, NC, scheduling viewings, researching the neighborhood and making offers is overwhelming. Finalizing financing can be just as hard. Make your move easier by learning 5 tips for financing new homes.

  1. Check Your Own Credit Before You Let a Lender Run It

Find out what your current credit score is and if there are any outstanding debts you can take care of before calling a lender. Taking care of defaulted debts or unpaid loans will help your process and increase your credit score so you can secure a better interest rate.

  1. Compare Lender Mortgage Interest Rates First

Letting a lender run your credit creates a hard inquiry that remains on your credit for two years. Hard inquiries can impact your overall credit score. Before you give up your personal information and let a lender run your credit, compare offers out there to see who has the best deals. Talk to your real estate agent, too, for insight on the best mortgage deals.

  1. Determine the Home’s True Monthly Payment Before You Commit

Often you’ll see an ‘estimated’ monthly payment for the mortgage. But don’t forget to include your escrow payments in that total. Property taxes, annual property insurance, and Private Mortgage Insurance (PMI) will all add to your monthly payment. If you’re comfortable with that true total, move on to the next step.

  1. Determine Your Down Payment

Some loans may require little to no down payment depending on your loan type. If a down payment is required, figure out if you can afford it. If you cannot, find out what other options are available. Also, keep in mind you will be required to pay a monthly PMI if your loan amount is higher than 80% of the value of your home.

  1. Organize Your Financial Documents Before You Call

Lenders will require several documents prior to determining if you qualify for a loan. Gather at least 2 months of pay stubs, last year’s W2, tax return, and bank statements before getting on the call. Having your documents ready will expedite your credit application processing time.

Start Your Search for Homes for Sale in Greensboro, NC Today

Real estate agents work in the home industry day-in and day-out for years. They often have industry insight and knowledge that can add value to your experience and impact your decisions. Working with a reputable firm can make your next move simpler. Make your search for homes for sale in Greensboro, NC easier by calling Jason Smith at 336-451-4921 or Jeff Smith at 336-215-7880.