After two years of living with the pandemic, the housing market is starting to heat up again. Many individuals want extra space in their homes. Unfortunately, with so many prospective buyers searching for a home, housing inventories are extremely low and the competition has never been more intense than what it has been recently. According to the NAR (National Association of Realtors), there were nearly 4 offers on the table for every home on the market in 2021.
6 Questions to Answer
Normally, the individual handling your mortgage loan will assist you throughout the entire process from application to close. But before you get started with the application process, you need to answer the following 6 questions:
- How much home can you afford? It’s pretty obvious that the first question should be about your budget and how much home you can afford. There’s no point in finding your dream home, if you cannot afford it. Thus, having a budget is important.
- How much should you put down? Once you’ve qualified for a home loan, you need to have enough money to cover the down payment and closing costs. While it may be difficult to put a large amount down, the larger the down payment, the more equity you’ll start out with.
- Which type of mortgage will be right for you? When it’s time to consider the type of mortgage loan that’s right for you, there are FHA loans, Jumbo loans (for homes that exceed conforming loan limits), and VA loans for active and retired military. Thus, you can select accordingly.
- How long should the term of the loan be? Although 30-year terms are the most common, don’t forget that there are 10 and 15-year terms available as well. Even more important is finding a monthly mortgage payment that you’re comfortable with.
- How much is the interest rate? “Interest rate” is defined as the cost of borrowing money. It’s important to pay attention to how much your interest rate is since it can significantly affect the size of your monthly payment. In most cases, you’ll have a choice between an ARM (adjustable-rate mortgage) or a fixed rate mortgage.
- Which lender should you work with? Choosing the right mortgage lender is equally as important as choosing the right home loan since it can adversely or positively affect your mortgage loan experience. Mortgage companies vary in many areas such as customer service, their rates, what they offer, and more.
Buy a Home or Refinance in Ohio
If you’re finally ready to begin the mortgage process, Liberty Capital Services is here to assist you. Call us at (614) 505-0620 to learn more. Our team is available to schedule an appointment to answer any questions and walk you through the process.
