Are you ready to embark on one of the most exciting yet nerve-wracking endeavors of a person’s life? We’re talking about buying a house! There are few greater investments of time, money and emotion than the purchase of one’s first home. Mortgages-page.com is dedicated to becoming your one-stop online resource to help you navigate the difficult terrain on the path to homeownership.
We cover all of the topics that you need to know, from pre-approval to what to expect upon closing. Our mortgage experts understand how intimidating and downright overwhelming this process can be, so let us lighten the load with our wealth of mortgage-based knowledge.
Prices are calculated by an array of variables which in turn amounts to a degree of risk. The geographical location is a factor, of course some areas naturally will cost more than other areas. Is your town known for earthquakes? Or wildfires in the summer? Your geographical location has a lot to do with the rate that you will be charged.
If you have previously owned a home, that history and past damages can affect future insurance prices. According to demographics from Insure magazine, marital status is also a pricing factor. It is not limited to marital status though house insurance providers will look at your age too. Just like vehicle insurance, there are certain personal factors that are considered when determining a quote for insurance.
To avoid paying out-of-pocket, make sure to read the policy and fully understand the coverage that you are going to get. As the saying goes, “you get what you pay for” this is true with home ownership. Some policies only cover basics or have a very limited financial cap.
Vital Documents and Information
Home insurance and mortgage protection protects you from financial ruin when it comes to your home is damaged from disasters like natural fires and floods, and even accidental humanmade fires or water damage. Some even financially compensated if someone is killed inside the home. Home insurance also covers the structure of the house and the possessions in the home.
Before trying to get a premium rate or price, hire a civil engineer professional in construction to ensure you are getting the most exact quote for your home reconstruction estimate. Don’t forget to make a list of all the stuff you have in your house. This includes all clothes, jewelry, technological devices, and electrical appliances. Exclude any on hand cash, cellular devices, computers, damage done by household members, or willful destruction of property.
Investigate and get the following other information:
1. Year the house was built
2. Purchase price
3. Distance to Fire Company and Fire Hydrant
4. Year of last update (including Roof, plumbing, heating, and electrical)
5. Type of heating system (such as Forced Air, Water or Electric Baseboard)
6. Any other exposures (like swimming pool, or trampoline)
7. Square footage of the property
Can Fido Stay?
Unfortunately, although home insurance policies can’t force you from buying a puppy or adopting any dog breed, some insurance companies can decline to issue coverage. It is important to be honest regardless of how much you want to rescue Fifi or buy Fido. Lying about even the breed could invalidate your policy.
Essential point, always ask. You may be pleasantly surprised to discover that they may cover Fifi if she has a good behavior history. Negotiate a deal for yourself and your pup, or other housing preferences. One of the considerations regarding pets is the breed.
If you are looking at homeownership and are struggling to understand or to find the right home insurance, contact an agency with a century of reputable local practice. Many mortgage companies and brokers will have information for the most reputable insurers in your area and will be happy to provide a referral for services.
When you decide that the time is right to pursue homeownership, it is important to be prepared for the steps along the way that will take you there. There’s a lot that needs to be sorted out before you get to the big day where those keys are put into your hands. Mortgage pre-approval is one of those things that will help propel you forward, and in fine form.
What is Mortgage Pre-Approval?
Essentially, mortgage pre-approval tells you how large a mortgage loan you qualify for. This is, for the record, not a guarantee that you will be approved. What it does do, however, is show buyers and lenders how serious you are about getting into a home of your own.
In the case of many lenders, pre-approval will also lock you into the designated interest rate, but only for a limited time as you decide whether or not to move forward. Some lenders will lock you into the pre-approved rate for as long as 120 days, but it’s best to ask about the institution’s unique policy.
What is Required of Me to Get Pre-Approved for a Mortgage?
Unlike pre-qualification, pre-approval takes into account many aspects of your financial situation to give you a figure that represents how much of a loan you qualify for. Pre-qualification certainly has its uses, but pre-approval is regarded more highly because it does get a fairly thorough snapshot of your finances. To become pre-approved for a mortgage, you will need to have a fair amount of information on hand.
Proof of Your Income
There is no getting a loan these days without being able to prove that you have the income necessary to pay off such an obligation. You will need to provide W-2 information for the past couple of years, as well as recent paycheck stubs that show a consistency or improvement in your earnings.
If you’re not sure what your credit report and credit score look like, now’s the time to check it out. Get a copy of your credit report so that you can see if there are any errors that need correction or debts that can be eliminated through repayment that you presently owe. Boost your score by making good credit decisions.
Those with high credit scores and clean reports of credit tend to qualify for larger loans, as well as smaller interest rates.
Identifying and Other Documentation
Your state identification card and social security number will be required for the lender to run a credit check. You may also be asked for:
- Divorce papers, if alimony or child support factor into your income.
- A gift letter, in the event that you are using money obtained as a gift to obtain the mortgage.
- Account statements to illustrate your assets, including banking statements.
If you have all of this documentation on-hand at your mortgage pre-approval meeting, the process will move along much more smoothly. This gets you into the home of your dreams even sooner!
Is poor credit keeping you away from your dream of owning a home someday? This is a position that many people find themselves in, essentially halting this next step in their lives. Fortunately, your credit score isn’t static. It can and does change over the course of a person’s life. If you make wiser credit decisions whenever possible, you will see improvement in your score over the following months and years.
The first, and possibly easiest, smart credit decision that you can make is to obtain a copy of your credit report.
Mistakes are Made
Knowing your credit score is important, yes, but actually seeing your credit report is much more informative. You might know exactly what your debts are an where you’re in the deep red, but you have no idea as to what errors may be on there.
Unfortunately, it is not uncommon for errors to be present in credit reports. For this reason, you should go over the document with a fine-toothed comb and ensure that even the most basic of identifying data is correct. Make sure that your SSN, name, address, past and current employers and the debts present in the credit report are accurate, 100%. Mistakes made on a credit report can really drag down a person’s score.
If any questionable information has come up on your credit report, reach out to the reporting agency via certified mail. Keep a detailed log of these exchanges. The reporting agency has to respond to your claim within 30 days. If the debt in question cannot be verified, it will be removed from your report and will no longer impact your score.
If this requires more time and effort than you can afford, or if you’re too perplexed by the process to understand how to proceed, you can recruit the help of a credit repair agency.
Identify Theft is a Real Issue
A person’s identity can be stolen without their knowledge. This happens quite often, with many victims of identity theft not being aware of it at all until they’ve picked up a copy of their credit report. Fraudulent uses of your identity can deeply impact your credit, so anything suspicious should be handled right away.
If you see anything on your report that is not familiar to you, this may have happened to you. Reach out to the credit reporting agency to address this matter and keep it from continuing to effect your credit score.
Get In Touch
Do you think that you’re ready to take on the benefits and responsibilities of homeownership, but you aren’t sure where to begin? Do you need advice to help you make the right decisions along the way? Mortgages-page.com is here to educate and provide support to prospective home buyers worldwide.