There are many questions you need to ask yourself when considering purchasing a new home and getting a mortgage.
“Home season” will be coming along with the warm weather this spring. If you’re looking to purchase a home, you may have started getting together all the paperwork needed for mortgage preapproval and sought out the services of a real estate agent.
But have you asked yourself these eight important questions? If not, now is the time to ask them and find the answers.
How much home do we need? This all depends on your current and future family size. Also, do you or a spouse work from home or want a workout area? Think along these lines.
How much home can we afford? Once you have an idea of how much space you need, see how much home you can afford. Too many people got in trouble when the housing bubble burst with mortgages they couldn’t afford.
How much stress will this put on us and our kids? Purchasing a home can unravel even the coolest of customers, as can moving.
Have we been improving our credit score? Simply put, the higher your score, the lower your interest rate and down payment will be. A score of 720 or higher is the benchmark you should shoot for.
Will we be able to avoid private mortgage insurance (PMI)? PMI is just another cost associated with purchasing a home.
Have we saved enough for a good size down payment? In general, making a down payment of 20 percent of your home’s value or higher allows you to forego PMI.
Have we saved enough for closing costs? On average, closing costs run between $2,300 and $4,000, so having this cash on hand makes you all the more prepared.
Are we ready to commit to living in one place for awhile? Short-term ownership is an expensive proposition, so be sure that purchasing this home is the best choice for your family.
The last thing Security State Bank wants is for our customers to be stuck with a home they are unsatisfied with or can’t pay for. Think hard about these questions, then call or come by Security State Bank today for help with your mortgage needs.