The decision to buy a home should never be taken lightly. In fact, it’s one of the biggest financial decisions many folks will ever make.
That said, before you begin looking around for the house of your dreams, it may be worth looking into the mortgage market first.
There are many different factors to consider when looking into a prospective mortgage. And choosing the right mortgage lender is no easy feat.
Here are a few things you can do to simplify the mortgage process to get you out of your apartment and into your dream home.
Don’t apply for new credit
For a traditional mortgage loan, the minimum credit score is 620 and a minimum for an FHA loan is 500. Although applying for a new line of credit may sound like a good idea (especially when you’re refinancing), it’s actually not the best decision in most cases. This is because when you apply for new credit, it can leave a bad mark on your current credit report. It can also impact your debt-to-income ration, which will seriously affect your mortgage and interest rates.
This mark impacts the credit you’ve already received and the amount of credit you’d be able to borrow in the future. In fact, applying for new credit may disqualify you from a mortgage entirely. So don’t apply for new credit until the mortgage process is officially complete.
Don’t worry about speaking too early to a loan officer
Many potential homebuyers think the best time to speak to a mortgage officer is around the time they plan to buy a house. Actually, the best time to speak to a mortgage advisor is in the months before you plan on shopping around.
This is because a mortgage advisor can help you figure out where your strong suits are and where you may need help. Additionally, they can help you figure out what kind of mortgage you’ll be able to qualify for and which kind may be out of your price range. Even if it’s six months before you begin looking at houses, it’s definitely not too early to speak to a mortgage advisor.
Consider in-house financing
In-house financing is one of the best ways to ease your mortgage process, especially when you’re considering newly built homes in your area.
When you choose to buy a home with Camden Homes, you can not only expect to buy a home that’s newly constructed but also one that allows in-house financing to make your mortgage process that much easier. To learn more about new construction homes in Houston, Fort Worth, and Dallas, contact the new home builders of Camden Homes today.