The new year is just around the corner and there are lots of things to look forward to. Some are starting new careers, excited about events like weddings, moving to a new home, and more.
Buying a House for the First Time
If buying a new house was as easy as shopping for clothes, consoles, and furniture, many older millennials would have already invested in their houses. Regardless of when is the target time to buy a new house, everyone should be aware of the things to consider before taking the step towards buying a new house.
Save Money, Save Your Future
This is the number one rule that applies to anybody. No matter what kind of investment you want or what things you want to buy, savings will save you in any situation.
Be Responsible: Pay Your Debts
Debt comes in many forms—payday loans and credit cards among them. Applying for such services is easy because they only require a few documents. There’s nothing wrong with applying for loans, however, you must be a responsible payor. You have to be aware of your lifestyle and needs. Examine your daily expenses vs. salary. If there are unnecessary expenses you think you can live without, ditch them.
Boost Your Credit Score
Do you know a good credit score matters when you apply for a home mortgage? Lenders examine your history as part of reviewing the application of each candidate. One factor they care about is the credit score, which includes credit history and credit utilization.
Besides credit scores, they also check dispute statements and major derogatories in your record, such as bankruptcies. If you have any negative marks, there is a lower chance to get their approval
So whether you borrowed money from a payday loan or credit card, keep in mind to maintain a good credit score because this really shows how responsible you are.
The Types of Home Mortgages
There are many types of home mortgages available. Among them are Conventional Loans, Federal Administration Loans (FHA), and VA loans. Each has its unique benefits and requirements. If you were advised to get conventional loans by someone, before applying, you need to know that this loan is not offered nor secured by any government entity.
Usually, these are fixed-rate mortgages with stricter requirements, thus, making it difficult to be qualified. Expect it will ask for a bigger down payment, and they require higher credit scores and lower income-to-debt ratios from the candidates.VA (Veterans Affairs) loans are guaranteed by the U.S. Department of Veterans Affairs (VA). As the name suggests, a loan for veterans to obtain home loans with favorable terms, usually with no down payment. FHA is part of the U.S. Department of Housing and Urban Development (HUD), and its home mortgage loan programs are offered to American citizens. The pros of this mortgage are it requires a lower down payment and is easier to qualify for than a conventional loan. FHA loans are among the ideal home loans for first-time homebuyers. However, all FHA borrowers are required to pay the mortgage insurance premium.
Your Mortgage Broker in Oak Lawn!
Richard Pikula of MidAmerica Bancorp, Inc. quoted “Homeownership is one of the most important choices anyone can make. That is why it is important to educate yourself about the different kinds of loans and the best ways to prepare yourself for this huge financial decision.”
If you are looking for affordable ideal home loans and are a first-time home buyer in Chicago, or throughout the states of Illinois, Indiana or Florida, you should check out MidAmerica Bancorp, Inc. We offer different types of loans and look forward to meeting with you to explain their benefits and requirements.