They say that your home will be the largest investment you ever make in your life. With that said, you want to find the right home at the right price. That involves getting a good home loan and consulting with Kalamazoo realtors. Here are our top 5 tips when getting a home loan.
- It’s Never too Early to Save for the Down Payment
Every home loan comes with some form of down payment. Exactly how much that down payment is can vary between lenders and loans, but you’re looking at anywhere between 2.25% and 20% of the full purchase price of the property. Creating a monthly budget now is one of the best things you can do to start saving for that down payment.
After arriving at a budget – and testing it out – you can arrange to have a portion of your money deposited in a savings account automatically. That way, you’ll be able to automatically save towards your new home without having to worry about it.
- Perform a Credit Score Check
How much money you can borrow depends on your credit rating. It can also determine the rates and terms of the loan. Going into a home loan with a good credit rating helps to secure the best deal. That’s why you should obtain a copy of your credit report well before buying a house. Look through your profile and see how a potential lender perceives you. Take any necessary actions to correct your profile and give it a little boost.
Don’t worry about costs as you’re eligible to obtain one free copy of your credit report per year from a major credit reporter (Equifax, Experian, and TransUnion). These reporters are also the people that you should report any errors to so they can correct them.
- Put Together Important Financial Documents
Lenders and realtors in Kalamazoo MI are going to want to see financial documents. It helps everyone involved for you to prepare the documents well ahead of time. At the very least, you should have a copy of two pay stubs, a copy of your most recent W-2, and at least two years of tax returns, along with current brokerage and bank statements as applicable. Get those documents ready, and you’ll have your loan before you know it.
- Use a Mortgage Calculator
A good mortgage calculator can help you estimate how much you can afford to borrow and pay back. They are simple to use and help you understand what kind of mortgage payments you can expect to pay based on the value of a property, interest rate, and size of the mortgage.
- Get Pre-Qualified for a Loan
Some Kalamazoo realtors will require you to be pre-qualified before helping you find a home. The good news is that it’s easy enough to get pre-qualified. Just supply the lender with the documents they need to prove your income and your current savings and investments, and they’ll pre-qualify you for a set amount of money. This money will give you a good idea of what budget you’re entering the home hunt with, too, so it’s just good to have.
Getting a home loan is easier than it seems. These tips can help push you through the process so you can find realtors in Kalamazoo and start your journey to get the home of your dreams.
For the best realtors in Kalamazoo MI, look no further than the Stirk Realty Group. Call them today at 269.207.7894 or send them an email at Team(at)stirkrealtygroup(dotted)com.