Real estate investment can be thrilling and tricky at the same time, especially when you are the first-time homebuyer. You want to be in your best financial shape to attract lenders, to possibly get a good rate and have the right loan for your needs. But the challenge of buying a home can be daunting – it's either you go for your fist home or continue to rent.Whether you plan to invest in a condo in Taguigor any real estate property in the Philippines, it is inevitable to think about the possible outcome.
When it comes to buying your first home, there are certain things to consider before you decide which property you should purchase. Doing a little homework would be a great help to achieve a desirable outcome. To give you some ideas, below are the tips to make sure you can get the best possible mortgage.
Improve your creditworthiness
The moment you decide to purchase a property, your credit profile is one important thing you should consider. A good credit score is one way to show the lenders that you are worthy of your next loan. Lenders make sure that the borrower can pay their loans. Regardless of your previous loans, if you pay your dues on time, lenders will surely let you have your loan. Moreover, this is also one way to know which loan is best for you to fit your current situation.
Save for the down payment
First things first, you cannot have your dream home when you don't have the down payment yet. Although a 20% down payment on a mortgage is ideal, it's not mandatory. Some lenders would expect their buyers to pay at least 3% of the down payment. But if you opt to invest in a building sizable equity right away, you can stash a hefty amount of cash to take to the closing table.Moreover, determining what you can afford will also help you know the down payment you should have.
When you decide to purchase a property, you should not forget to seek and get a mortgage preapproval. This is to ensure that you will know how much money you are qualified to borrow for buying a home. And once you're preapproved, you can have a realistic expectation of which property are for sale fall within your budget. Moreover, seeking preapproval is helpful especially when you are on a tight budget.
Shop for a lender
There are actually various kinds of the lender, depending on which type of loan you want to have. When it comes real estate investment, there are also lenders that offer a favorable interest rate. Moreover, just because they have a lot to offer, that does not mean it is the right lender for you. You need to find the best mortgage lender for your current financial situation. And to avoid any complications with the process, later on, it is best for you to adhere the advises your lender tells you. With this, you will not have a hard time processing your loans.
Research loan types
Before you decide to get a loan, you have to know which loan is best for you. Yes, not all loans are applicable to your situation. That means you should be mindful of the loan you avail to make sure that you can get the best offer that fits perfectly in your situation. Moreover, a fixed-rate mortgage isn't right for every homebuyer. That means, if you plan to live in the property and raise a family, you might want to consider a 30-year loan. When you have the right loan for you, you will surely be able to proceed to the next step in achieving your dream home.
Final Thoughts: Although there are a lot of things a first-time homebuyer should consider, you should also know that this may be an excellent way to start your journey to achieving your goal.
But there's a caveat, though; you should also consider your lifestyle to make sure that you will have a better way of living in your new home. Moreover, when you shop for homes, consider your work commute, nearby schools and convenient stores, and any extracurricular activities that you might be interested in participating.
Arvind Mishra – I am a full
time real estate enthusiast always ready to help people with their property
queries. I am a consultant for many property firms and my insights into the
market trend have always been well received by the Indian property gurus.