Do you want to purchase your own home? If the answer is yes, then the next question would be; have you positioned yourself financially for homeownership? To position yourself means that you have a clear picture about where you are at the moment and you are keenly aware of where you will like to be in the future.This process all begins with a plan. Most of us plan towards the purchase of a new car; plan out the details of a wedding; or plan out a career path. The path to home ownership is no different. Here are guidelines to help you chart the course:
Become familiar with the mortgage process
Visit financial institutions for mortgage brochures and be guided by their requirements for future reference. There are resources available online that seek to make the entire mortgage process more palatable.
Establish good credit habits to ensure a good credit history
The term of a mortgage loan can run for a period of 10 to 30 years. Therefore, part of the mortgage assessment may include accessing the credit history of a potential mortgagor. A good credit rating means that the candidate continues to pay his creditors when payments are due and this will assist in the final evaluation of the actual mortgage application.
Save towards your down payment in a separate savings account
Ideally, the funds for the down payment should be deposited in a special savings account separate from your normal savings. Mortgage lending institutions require a down payment of 10% to 20% of the property cost. Potential mortgagors should also consider the cash requirement for processing fees; legal fees; valuation fees and stamp duty.
Get a mortgage pre-assessment evaluation
Make an appointment to have a mortgage pre-assessment at a mortgage financing institution. These pre-assessments are free and would inform you of your qualifying mortgage amount. This places you in a better informed position of knowing how much you realistically need to have as a down payment towards the purchase of a home.
Get more persons involved in the house hunting
Once you actively start looking for a home inform friends and family of that intention. They can be an additional source of information on existing properties. When a more affordably priced home enters the market, they can contact you, thereby increasing your chances of securing the property in a quicker time frame. There are many benefits to being a home owner. Remember, that a mortgage is a long term commitment; the required documentation to start an application is necessary so that risks are lessened. Make an appointment to speak with to a TBLA mortgage officer to improve your chances of making purchasing a home a reality.