Getting involved with a long-term debt such as applying for a house mortgage loan is not a process one should enter lightly.
There are a lot of things to be examined before placing your final signature, so in order to prevent yourself from making a mistake that will determine your future 15 to 30 year financial situation read on.
First thing to take care of is your positive credit score.
Do not plan on look for a mortgage in case you haven't been careful with your debt recently.
The best advice is to order your credit report half a year prior to the actual purchase, examine its week spots and correct them - usually this will include straighten up with your credit card payments.
Remember your FICO score will definitely influence your interest rate so manage your debt carefully.
Do not omit to shop for your loan.
Contact different banks, brokers, request quotes and make your market research properly.
Do not get stuck with the first offer you receive, the industry is very rich in perspectives so find the best option for you.
Look for first time buyer programs as well, typically sponsored by state, county or city governments that could often offer you better rates and terms than the privately owed lending companies.
Do not fall for the most expensive mortgage, lured by the maximum amount offered.
You often do not need to bear such expenses and you would find yourself with covering costs that will exhaust your college or retirement savings, or even your vacation fund.
Do not make the mistake to be left with no cash after paying for the closing costs of the loan.
Do not go for whatever program you are offered, learn what is the best one for you.
For example you wouldn't need a 30 year mortgage if you are retiring in 10 years, or an adjustable rate loan - you'd better lock your rate, or sign for huge loan when in fact your needs are modest.