It is better to be informed and have knowledge and information on home mortgage before getting into it so you can know what you're getting into. Home Mortgage will be a debt added on to your list of debts you already have if any, but this is one debt you don't want to play around with and mess up like previous loans you might have had in the past. There are so many foreclosures going on now today, so trust me that you don't want to get into a home mortgage with no knowledge. When you rented the property before, the property manager was in charge of the repairs and things. Now you will be in charge of the repairs if any damage occurs on your property in which you are now the owner. It will depend on the area where the home is located that you're trying to buy that will cost you more fees, a community that is very nice and if it is surrounded by mansions or condos then there will be some extra fees you have to pay.
Before jumping into it you need to determine if it's good to buy or not because your interest rate, your closing costs, and other costs can make the amount very high. This could result in your home mortgage being so high that any downfall that you might come across in the future might make it hard for you to afford the mortgage. This is why there was so many home foreclosures in 2013 already and the year isn't fully over. I will tell you some finance tips that can help you.
-Large Down Payment
If you put down a large down payment which would be way more than what the minimum down payment they're asking for, this would make your interest rate and your mortgage lower. Having your interest rate and mortgage lower could benefit you when it comes to making payments, your payments can now be a better price that you can afford to manage. If you put down a low down payment, loans will only provide only a little equity and your interest rate and amount will be high which can put you so far in the hole you can't continue to manage your payments if a lose of a job happens or something.
-More Debt To Worry About
Keep in mind that this loan will be an extra bill added on to your already list of bills such as utilities bills, car note (if you have one), phone bill, health insurance, car insurance. After bringing all your other debts to mind, the thought should now be will be be able to afford this home mortgage.
-Credit Score
Depending on what your credit score is, when you apply for a loan it will help determine what your interest rate would be. So it will pay to keep your credit score in good condition and looking great before you are ready to buy a home. Paying your mortgage payments on time will keep you away from the risks of your home going into foreclosure. If you have a bank account, you should set up the automatic bill pay option with your home mortgage, that way it can always be paid on time as long as you have the money in your account to cover it.
-Don't Refinance
You shouldn't refinance your home unless it will lower your interest rates that you hade before. You should work at getting rid of your mortgage debt as quickly as possible by getting a small loan amount that you would be able to pay back within 20 years. If there is no prepayment penalty then you should make payments that's more than the amount you're suppose to at times when you can afford to.
A lot of young adults and teenagers have in the back of their heads that they want to go to college and graduate, then get married and buy a home, but a lot of them don't understand how much debt this will be. Research have shown that the average college graduate has more than $26,000 in debt from student loans. And their next step is they want to take on mortgage debt that will put them even further in the whole. It is very important to understand the costs of owning a home before you get yourself in debt with home mortgage. Mortgage interest rates, stands at an average 4.4 percent for a 30 year mortgage fixed rate, homeowners must also think about both property taxes and homeowner's insurance costs, as well as the down payment amount. Not to mention a lot of mortgage companies will also require that you get mortgage insurance as well.
