Buying a home is one of the most exciting milestones and for many people,is one of life’s most important successes. However, because of this, the home buying process can become a very emotional one where the buyer makes decisions based on emotion instead of an analysis of the facts. By following some basic tips and guidelines when acquiring a mortgage Chattam, IL based, it is possible to make the best home buying decisions that are financially sound.
The first tip when purchasing a home is to decide on a budget that is affordable for you. It is easy to select a price range and then go a few thousand dollars over, not realizing that this means an increase in monthly mortgage payments that could be difficult to maintain. Once you have decided on a budget, avoid looking at homes outside of this price bracket unless you think you may be able to get the home at a lower price.
Prospective homeowners looking locally for a mortgage Chattam, IL loan, will want to consider saving for a down payment beforehand. Although it may be easier to accept a no down payment loan, your payments in the long run will be higher. By putting down a larger downpayment upfront, you will receive a lower interest rate, decreased closing costs and a smaller overall debt load to repay. There are many State funded programs that will match savings for down payments for first time homebuyers. Visit the Illinois State website or inquire with your local lender about these options.
The third tip for new home buyers is to read all the paperwork associated with your mortgage agreement. Too often in the excitement of purchasing a new home, there is fine print which goes unread. Be sure to ask your lender for a write up of all the associated fees, points and closing costs so that you will know exactly what you are paying upfront and over the life of the loan. In general, you should not be paying the lender more than 1 to 1.5 points. In some cases you will pay up to 2 points if your interest rate is very low. There is no way to avoid paying a little extra when closing a loan. You will either pay a higher interest rate and lower points, or a lower interest rate and slightly higher points.
Buying a new home is major accomplishment that should be celebrated and enjoyed. However by taking the time to read the fine print and select an affordable mortgage Chattam, IL loan, you will be able to rest assured that you have selected the best home and mortgage rate for your financial budget and lifestyle.
Get the highest level of home loans and mortgages with the help of professional financial companies in Chattam, IL.
