If you’re looking to give your landlord the boot by becoming a homeowner, then you need the services of a reliable mortgage broker here in Tempe. You don’t want to be among the homeowners who find out the hard way just how slippery a slope the process can be.
As with any financial transaction that involves huge sums of money, it helps to have an expert rooting for you. Working with an industry insider lets you get the best rates and terms in the market, avoid costly mistakes, and save on time. You need expert help to breeze through the tricky process.
Get the best interest rates
Most first-time homebuyers are only too happy to qualify for a mortgage that they don’t stop to question the interest rates. They are quick to sign up with the first lender that accepts their loan application. Unfortunately, that often turns out to be a grave mistake.
You need to shop around when looking for a home loan as that’s how you score the best rates on the market. See, the mortgage market is quite competitive, and lenders are quite amenable to negotiations. They are willing to offer you lower interest rates to secure your business.
As market insiders, brokers have extensive knowledge of the market and will gladly help you get the best rates. They will also offer helpful advice when picking out a lender or a loan plan. You can rely on their expertise to help you save money over the life of the loan.
Raise a sizeable down payment
A decade after the 2008 market meltdown, bankers still tread cautiously when approving mortgage applications. They only want to be in business with people who are capable of servicing their loans. Raising a sizeable deposit, at least 20% increase your chances of success.
Raising a deposit not only put you in their good books but also saves you money in the long run. It lets you escape unnecessary costs such as private mortgage insurance while entitling you to excellent interest rates. Avoiding extra charges keeps the monthly payments affordable, which lowers the total cost of the house.
Down payment requirements vary between and among lenders with some accepting deposits as low as 3.5%. While putting up a small deposit might sound like a good idea, it ends up being a tad more expensive in the long-run. Successful homebuyers avoid incurring extra charges, opting instead to put most of their money towards paying back their loans.
Ask for a reasonable amount
Being qualified for a mortgage helps to identify the total amount a lender is willing to give, which is crucial in informing your house search. However, you don’t have to take the entire amount offered. You need to crunch the numbers first and settle on what you can afford.
It’s advisable that you create a personal budget as it gives you a great insight into the state of your finances. Successful homebuyers ensure that they have enough money to make mortgage payments all year round. Budgeting lets you zero in on this amount, and you can use it to calculate the total loan amount.