So, you’re ready to make the big leap into home ownership? Good for you. Home ownership can be a great experience and holds a number of tangible and intangible benefits. But first, you need to actually buy that property, which, especially if this is your first home, can feel more than a little complicated.
Understanding the mortgage process
Since a home is arguably the biggest purchase you’ll ever make, being prepared is key to having a successful experience. Doing some homework ahead of time – specifically on mortgage prequalification, the type of mortgage that’s best for you and determining how much home you can afford – will benefit you when it comes time to take the plunge.
U.S. Bank is a great resource to help you navigate the often complex home-buying process. And if you’re really new to this frequently perplexing world, look no further than Achieve Your Goals, a new financial resources site from U.S. Bank. It’s full of information on a wealth of topics, including a My Home section filled with great articles on everything related to mortgages, homes and the home buying process.
What is prequalification?
Prequalifying for a mortgage is an important step in the home-buying process. It lets everyone involved know you’re serious about buying a home, and is a great way to help keep the process running smoothly. To see how much you may be able to borrow, and under what conditions, complete a mortgage prequalification request with U.S. Bank to get the ball rolling. You may be surprised what you may possibly qualify for. To do this, know that you’ll need to be a legal U.S. resident and 18 or older. Also, you’ll need to know your pre-tax annual household income and monthly household debt.
If you have been pre-qualified, the next step is determining what type of mortgage makes sense for your individual circumstances, as there are various types of mortgage loans. There are plenty of resources available where you can learn about the different types of mortgages that could be available to you
How much home can you afford?
First, figure out your plans for occupancy. Are you intent on living in the house for only a few years? Or maybe for the rest of your life? Are you in the military? Or have your eye on your dream home? Your answers to these questions could determine the type of loan and home that will work best for your personal buying experience.
Whatever your circumstances are, give it some thought ahead of time. To get estimates of what your mortgage payments could look like, try this U.S. Bank mortgage calculators.
Once you’ve been prequalified, determined what type of mortgage makes the most sense for you and know how much home you can afford, you’ll be ready to start looking for that dream home.
Paul @ The Frugal Toad says
Starting to save for a down payment needs to be high on the list for 20somethings. With real estate values continuing to rise, young potential homeowners will most likely need to delay purchasing a home until they have saved enough to have a minimum 20% down payment plus an emergency fund to cover unexpected household repairs.
Prequalifying is a great tool to see what is affordable.