Are you considering investing in a home in the Canton area but aren’t exactly sure how to go about getting the best mortgage possible.
If so, then you’re sure to take away something from today’s Canton, Michigan real estate blog!
Today, I’m going to share with you tips on how to get the best possible mortgage on your next home in Canton.
Make Sure To Do These Things When Getting a Canton Home Mortgage
Know what your credit score is. Especially in today’s housing market climate, it’s important to have as favorable of a score as possible to ensure that the banks will be willing to lend you money. Generally speaking, most lenders require a minimum score of 680.
Start Gathering the Pertinent Documents Now. Regardless of which lender you go to, it’s likely they’re going to ask you for the same documents, including your last two pay stubs, your recent bank statements, your W-2s and your income tax returns. By preparing these documents now, you’ll avoid the headache of having to gather them all on deadline.
Be Realistic About What You Can Afford. It’s best not to go with the maximum amount that your lender tells you that you can afford. After all, you want to be able to live comfortably without stressing out about making bills each money. So plan your budget, including for unexpected expenses.
Don’t Choose to Go With The First Mortgage Offer You Find. Just like any other investment, it’s important to shop around for the ideal mortgage. After all, rates matter, as do terms of conditions for mortgages. Pay attention to the fine print.
Once Your Mortgage is Approved, Don’t Add Anything to Your Credit. The lender is more than likely going to check your credit once again before closing, if not more than once. So make sure you don’t take out any extra lines of credit, such as to finance a car. And don’t apply for any new credit cards either! Stay put until after the closing has happened and the keys to your new home are in your hand.
Consider Getting a Shorter-term Loan. While this may not have always been possible in the past with higher interest rates, today’s near-record low interest rates may mean that you’re able to afford a 20-year or 15-year loan. This will save you a boatload of money in the long-term so if you can swing it, you may want to pursue that optin.
If you Receive a Cash Gift, Be Prepared to Explain It. Perhaps your in-laws or parents gave you some money to help with your home’s down payment. That’s wonderful and you’re lucky to have such caring relatives! However, it’s also important to know that you may be asked to explain that gift to your lender. And also be aware that some loans have a maximum amount that you’re allowed to borrow from someone else.
Don’t Give Up. The loan process can be quite tedious and stressful. But hold on. If you’re working with an experienced REALTOR®, you can rest assured that eventually, you will find the perfect home loan that works for your situation. And when you’re receiving the keys to your new home at closing, it will all be worth it!
Your Canton, MI REALTOR®
If you’re interested in investing in a Canton home for sale, then please contact us at The Bittinger Team.
We’ll be happy to help you secure the best mortgage loan for you as well as assist you at every other stage of the home-buying process.
For now, make sure to take a few moments to browse these resources we offer online:
Until next time,
Noel