5 Things to do When Buying a House and Applying for a Mortgage

Buying a house is a big deal and, furthermore, so is applying for a mortgage. When you’re ready to purchase a house you need to get your finances in order to work out just how much you can afford to spend.

1: Be Realistic

Many people over-estimate how much they can afford on a monthly basis. If you earn $3,000 a month then it’s likely that you cannot afford $2,000 in monthly mortgage payments when you factor in the cost of living. Sit down and look at your monthly expenditure. Do you have hobbies that you can’t live without? Do you like to take vacations and weekend breaks away? Do you plan on making a big purchase within the next year? If so factor in the cost of these into your monthly expenditure before deciding on your monthly mortgage payments.

2: Do Your Research

Research different areas and communities, take into consideration the school districts, proximity to work, leisure centers and amenities. Does the area you are looking at have all the amenities you need? If it doesn’t what are you willing to sacrifice? House size or proximity to work? Does the cost of commuting outweigh the lifestyle and vice versa.

3: Shop Around

Finding the right mortgage company is crucial. Don’t just go with the first company you visit, shop around and find out about all the different loans that are applicable to you at each company. Be sure to take note of interest rates and compare them to the current market. Remember you will have a long-term relationship with that company, so make sure you feel completely comfortable and confident that they have your best interests at heart.

4: Consult An Outsider

If you’re ever in doubt talk to someone who is not emotionally involved in buying the house to get an unbiased view. Before setting out to buy a house, it’s a good idea to sit down and write up a list of all the must-haves, bonus features and factors that you’d like in a home. Does the home you’re considering buying meet all of the must-have features? Does the extra bedroom really justify the additional cost? Having the outsider sit down and rationalize with you about the property can help you to see if you’re being rash or rational about the purchase.

5: Sign The Dotted Line

When you’ve finally made the decision to buy a home, have your lawyer or real estate agent go over all the paperwork. This will ensure that all the paperwork is in order, up to date and legal. Once both parties have agreed with the purchase price and the contract, it’s time to sign that dotted line.

If you are looking to purchase a home please contact New Home Resource at 702-365-1000 for a real estate agent to help you find your dream home. Joanna Piette was voted Best Real Estate Agent at the 2013 Best of Silver State Awards.