January 21, 2020

Tips to Successfully Close On a New Home

Tips to Successfully Close On a New Home

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There are various factors, such as micro and macroeconomic forces that greatly affect homeownership in various aspects, from homebuying to real estate, to even refinancing and beyond. When buying a home for the very first time, you might be scared and unsure of respective issues as are you getting the right deal on a mortgage, will it be accepted or not, how the later process will go and more disturbing thoughts. Keep in mind that it’s okay to be a little hesitant over certain things regarding buying your first house, as you have never encountered such a situation before. 

One of our primary goals at Everything Mortgages is to provide you with the detailed information and insights on the aspects that will maximally support your home buying experience. Hence, let’s together take an interesting and helpful trip to finding out the best ways to prepare for and close a mortgage. 

Before turning into the main tips, make sure to check out our blogs to find the necessary information for you regarding mortgages.

Choose The Right Lender

A major role in the entire home buying journey goes to your lender. Do not underestimate their importance in the overall involvement in the process of getting a mortgage, as they participate in most of the processes from determining if you reach your closing date in time to deciding the total cost of your mortgage? Your real estate agent might suggest going with a local lender that they had experience with working in the past. However, there are also various lenders that you can research and find online, that will end up being a better alternative for your specific case. In any case, before making the final decision, make sure to research properly. 

As mentioned earlier, one of the key qualities to look for in a lender is their efficiency throughout not only the closing process but the whole mortgage’s journey. The last thing you want to happen after agreeing to work with a lender is an absolute silence following the submission of your application. This could also follow by a last-minute push to reaching your closing date or even a late denial or your mortgage. Luckily, at Everything Mortgages, we truly take the saying  “Time is Money” close to our hearts. If you need help in finding the right lender, you can approach our fast pace working team. Our mortgage experts will make sure to match you with the best Private Lender as quickly as 48 hours. 

Keep Your Finances In Good Shape

Consider that for your mortgage application there will be a need for some important financial information, that will help to understand and ensure the fact that you will be able to comfortably afford your mortgage now and until the closing date. In fact, experience shows that credit score and debt-to-income (STI) ration are one of the primary causes to be rejected for a loan. 

The good news is that strategic preparation will definitely help you to avoid these kinds of roadblocks. An important tip is to start with checking your credit score before applying. Your credit score is an opportunity for lenders to check and understand your borrowing history and evaluate your ability to pay back your mortgage. That’s in mind, the higher your credit score is, the better your chances of getting a mortgage will be.

Important: Do not forget to calculate your debt-to-income ratio.

To put it shortly, your DTI ratio is your monthly debt payments (such as car loans, credit card bills, student loans, and other current and future mortgage payments) divided by your gross monthly income (the amount you earn before taxes.)

Make a Smart Bid

Cases other than when buying a house with cash, the appraisal of a property can restrict what you’re able to pay for it. The appraisal and other property issues come into the process in the period between locking your loan and closing on a property. 

Remember that the appraisal needs to meet or beat the price you agreed to with the seller. Typically, the appraisal value is driven by comps or comparables. This means that the lower your bidding price compared to these comps, the fewer worries are waiting for you.