Taking out a mortgage is probably the biggest financial commitment you will make in your life. And there are many Florida mortgages to choose from, so it is important that you know how to get a good deal. Below are some ways to make sure you have a better chance of getting a good mortgage.
Check Your Credit Score
Make sure you know what your credit score is. If it is not as good as it could be, make sure you try to improve it. Close credit cards you don’t use, for instance, and pay off any outstanding balances if you can.
Work out Your Budget
You need to make sure that you know you can afford the payments of your mortgage. You also have to be able to pay for the costs of taking out a mortgage in the first place. There are a number of fees and payments associated with it, and you should be prepared.
Don’t Lose Your Job
The longer you have been with your employer, the more likely you are to get a good mortgage. Hence, if you are considering switching jobs, try to wait until after you have been accepted for your mortgage, even if the new job is a better one.
Lower Your Existing Debt
You need to make sure you have as little debt as possible when you apply for a loan. Hence, if you have other outstanding loans, credit cards, or an overdraft, you need to try to pay that off. One way to do that is to consolidate everything into one loan. The more credit you have available, the more you will be able to borrow.
Prove Your Income
It is very important that you show the lender proof of your income. This means you need to keep your pay stubs from your employer. Your annual tax return is also possible, although this is only renewed once a year, so you may need to bring pay slips as well.
Save up for a Deposit
The more you can save up as a deposit, the better your mortgage options are going to be. Most lenders want you to put down at least 25% of the value of your home, in return for which you will get very friendly interest rates and repayment terms.
If at all possible, you should try to buy together with someone else. If you are married or in a partnership, this would be ideal. This is because the lender will take into consideration both of your incomes, thereby being able to lend you more. On a single income, you are unlikely to be able to get a high mortgage.
Speaking to a Broker
Last but not least, speak to a mortgage broker. You can get all the information about mortgages online, or make an appointment with your bank, but unless you are a financial expert, you won’t really be able to recognize the best deal. A mortgage broker can do that for you, however.