Your Guide to Home-Buying

by Carmen Gonzalez

As a new year rolls in, we all have a habit of setting goals. Homeownership tends to be one of the big financial goals we all have, but sometimes feel like more of a burden than a blessing. Renting is a great option for people who know that they are not ready to commit to living in one place for an extended period of time. If you are ready to plant some roots but don’t think you are financially ready for it, you can set up a pre-qualification meeting with a mortgage loan originator who can tell you what financing options are available for you.

When you decide that you want to buy a home, knowing where to start and what to prepare can be a little hard to figure out. A great place to start is by scheduling a pre-qualification appointment with a mortgage loan originator. In this meeting, you will be informed on what financing options you can qualify for and how much home you can buy. When you schedule this appointment with a Centric mortgage loan originator, you also get the perk of meeting with a Certified Credit Union Financial Counselor which means that if you do not qualify for a mortgage at the moment, they can advise you on what steps you need to take to correct your credit and finances in order to qualify.

When you get approved for a mortgage, you need to be prepared for expenses outside of the cost of the house. Things like closing costs and property taxes should be planned for in advance so you don’t wipe out your savings to cover them. You should also consider preparing to pay for a home inspection to be done before closing on the home. This way any structural damage or issues can either be fixed by the sellers or they can lower the selling price so you can pay for the repairs. When you meet with a mortgage loan originator, be sure you both take into consideration the costs mentioned above and the cost of insurance and future property taxes. You can ask to have an escrow account set up so your home insurance and property taxes can be rolled into your monthly mortgage note.

After your mortgage process has successfully ended with you making a house your home, you can start making home improvements and start paying towards your mortgage loan. As time goes on, if you pay your mortgage notes as scheduled and make home improvements, your mortgage debt will go down and your home value will go up. The difference between these two amounts is called equity. Equity in a house gives you a great opportunity to boost your budget and finances. When you have equity in your home, you can sell it for profit; or you can get a home equity loan. Home equity loans are a great option if you are trying to consolidate debt, accomplish a large home project, or pay for continued education.

At first glance buying a home can seem like a lot of responsibility with little return. When you have the right person to guide you through the process it can be an easy journey. Centric’s mortgage team can help you figure out what financing option is best for you and how you can own the home of your dreams. Keeping your budget and savings in check can ensure that once you are in your new home, you can still enjoy your life.