This post is written and sponsored by U.S. Bank.
So, you’re ready to make the big leap into home ownership? Good for you. Home ownership can be a great experience and holds a number of tangible and intangible benefits. But first, you need to actually buy that property, which, especially if this is your first home, can feel more than a little complicated.
Understanding the mortgage process
Since a home is arguably the biggest purchase you’ll ever make, being prepared is key to having a successful experience. Doing some homework ahead of time – specifically on mortgage prequalification, the type of mortgage that’s best for you and determining how much home you can afford – will benefit you when it comes time to take the plunge.
U.S. Bank is a great resource to help you navigate the often complex home-buying process. And if you’re really new to this frequently perplexing world, look no further than Achieve Your Goals, a new financial resources site from U.S. Bank. It’s full of information on a wealth of topics, including a My Home section filled with great articles on everything related to mortgages, homes and the home-buying process.
What is prequalification?
Prequalifying for a mortgage is an important step in the home-buying process. It lets everyone involved know you’re serious about buying a home, and is a great way to help keep the process running smoothly. To see how much you may be able to borrow, and under what conditions, complete a mortgage prequalification request with U.S. Bank to get the ball rolling. You may be surprised what you may possibly qualify for. To do this, know that you’ll need to be a legal U.S. resident and 18 or older. Also, you’ll need to know your pre-tax annual household income and monthly household debt.
If you have been pre-qualified, the next step is determining what type of mortgage makes sense for your individual circumstances, as there are various types of mortgage loans. There are plenty of resources available where you can learn about the different types of mortgages that could be available to you.
How much home can you afford?
First, figure out your plans for occupancy. Are you intent on living in the house for only a few years? Or maybe for the rest of your life? Are you in the military? Or have your eye on your dream home? Your answers to these questions could determine the type of loan and home that will work best for your personal buying experience. Once you’ve clarified your plans for occupancy, it’s a good idea to consult with a real estate lawyer to ensure all legal aspects of your home purchase are in order and aligned with your goals.
Whatever your circumstances are, give it some thought ahead of time. To get estimates of what your mortgage payments could look like, try this U.S. Bank mortgage calculators.
Once you’ve been prequalified, determined what type of mortgage makes the most sense for you and know how much home you can afford, you’ll be ready to start looking for that dream home.
Happy house-hunting!
Young people need to have it drilled into their heads that their credit rating is really, really important. No missed or late payments on credit cards or student loans — it can really impact the home purchasing process adversely.
It is a big help not only to get pre-qualified but get an idea of how much the home will really cost with fuel, snowplowing, etc. Also, many ppl buy a condo as the sale price is often less than a home, but with all the fees, assessments, etc., it should be a lifestyle choice rather than less expensive. This is a good article. The worst thing is to assume you can afford so much, go out looking at homes at open houses, etc., then find out you are qualified only for much less.