Top 10 things to do before deciding on a home loan: A mortgage loan is scary, isn’t it? Some people like to call it a “noose around the neck”, but I’m not so critical, because I understand perfectly well that buying an apartment without a loan for most young families is an abstraction.
However, this does not mean that the issue of obtaining a mortgage loan can be approached without any preparation, based solely on a little accurate information about your creditworthiness.
If you want to know any details related bank like routing number, IFSC code, PIN code, etc. Then you can get it from the Wells Fargo routing number Georgia.
The Top 10 Things To Do Before Deciding On A Home Loan Are:
1. Save on Your First Installment
A platitude that is often forgotten. Almost no bank on the market offers mortgages for 100% of the property value. Why? Because such proposals would put thousands of people on the brink of bankruptcy.
At the moment, the standard for the first installment is 20% of the cost, but I recommend collecting even more.
Of course, the thought of getting a mortgage was not born in your head yesterday. This way you will have a little time to tighten your belts, get rid of various expenses, work harder and thereby save up for a down payment. What does it mean? More precise loan terms or lower payments. Both situations are beneficial.
2. Create a Financial Cushion
When saving for the first installment, do not forget that it is always worth having some money for a rainy day. Life can be unpredictable, and it is extremely foolish to spend all your savings on a home loan.
Each person must have a financial cushion of at least three monthly salaries of adult family members. If you earn 50,000 rubles on your hands, then your piggy bank must be at least 150,000 rubles.
Better yet, if you manage to raise funds that will allow you and your family to live stress-free for six months or a year.
Such a stock can come in handy when, for example, you lose your job, but you still have to pay off the loan. This will give you time to calmly look for a new job.
3. Choose an Apartment in Your Pocket
In the process of choosing an apartment, do not succumb to delusions of grandeur. Now you have strength, health, and a good job, but you do not know if you will be able to pay off a huge loan to buy an elite apartment in the city center in 5 years.
Assessing your strengths, hammer the cruel truth into your head: you are buying an apartment with bank money, not your own. Don’t waste money that you haven’t earned yet.
4. Pay off Other Obligations
This is the best time to get rid of any loans, debts, and obligations. Check your obligations and pay them off as soon as possible. This will not only make you more solvent but also avoid drowning in debt when applying for a mortgage.
5. Give up the Credit Card
A credit card is a useful thing if you use it wisely. However, those wishing to obtain a mortgage loan should refuse it. Improving the credit rating is one of the arguments, but much more important is the introduction of financial discipline. Better not to risk it and tempt yourself with a very expensive loan.
6. Check Your Credit History
Checking your credit history is very important as you will know in advance how the bank will assess your financial situation. Thanks to this, you will not be surprised, for example, by a refusal to issue a loan.
In addition, the information in your credit history will allow you to make sure that all the institutions where you have ever had any obligations are listed. Everyone has the right to do it for free on the NBCHB website.
7. Manage Your Creditworthiness
This information is very valuable because you will immediately know what you are going with to take out a mortgage loan. Avoid unpleasant disappointments and wasted time.
8. Send an Application for a Loan to Several Banks
Thanks to this, you will get room for maneuver and minimize the risk of leaving with nothing if the bank makes a negative decision.
Remember that applying for a home loan is a rather laborious process, so it is better to start the procedure in parallel in several banks so that you do not have to start from scratch later. Find the routing number of any bank from the Bofa routing number.
9. Read the Contract Carefully
This is an extensive document, written in unpleasant and difficult language, so always ask for a copy of the house contract so that you can read it safely. If something is not clear to you or raises your doubts, do not hesitate to use the help of a lawyer specializing in lending. This service is not expensive, but it helps to avoid big problems in the future.
10. Strengthen Your Position at Work
If you are working on a temporary contract, be sure to ask your boss about the possibility of switching to a perpetual contract. Give him arguments: start working harder, put in more effort, focus on the results.
An open-ended employment contract does not guarantee complete peace of mind, but at least it will give you the confidence to receive advance notice, which is very important when paying off your mortgage.
Such an agreement is also appreciated by banks, which can offer you the best terms.