Before Buying Louisville Real Estate It Pays To Do Your Homework
For most of us, our home is our biggest investment, and the mortgage we secure to purchase it is the biggest debt we’ll ever undertake. The benefits of home ownership are many, but those who come to the loan closing table ill-prepared will lose out in the end. It definitely pays to do your homework when purchasing Louisville real estate. Here are a few things you can do to make sure you are ready when it’s time to sign on the dotted line.
Preapproval – Be sure to have your mortgage lender preapprove you for a home loan before you being your search for properties. Not only will this take the stress off of you later on, but sellers will find the offers of those who are already preapproved far better than those who aren’t. Unlike many parts of the load process, preapproval is relatively quick and painless and can often be done over the phone, so there’s no excuse for not being prepared.
Mortgage Type – It pays to spend considerable time studying the various mortgage options available to you and how each of them fits with your circumstances. For instance, your income today and what you expect it to be over the life of the loan, the current interest rate and where it seems to be going down the road, how long you intend to own your home, and how much of a down payment you can afford to make are all factors you should carefully consider. It’s important to have a handle on all of this information so that you can choose the kind of mortgage loan that meets your needs in each area.
Budgeting – It’s vital to know how much of a monthly payment you will be comfortable with once the papers are signed and the keys are yours. Your lender may preapprove you for a loan amount whose monthly payments are more than you really want to spend. It’s wise to know your limits from the very beginning so that you don’t end up “house poor.” Consider your lifestyle and remember all of the other expenses that come not only with home ownership, like utilities, cable, insurance, and maintenance but also the other expenses you will have, like food, entertainment, education, travel, and the like.
Fine Print – Mortgages are complex contractual arrangements, and they come with lots of stipulations and potential penalties. Do some research on the front end to make sure you can make extra principal payments or pay off the entire loan early without penalty should that become an option for you. Also, check to see if your mortgage is portable and/or assumable. Portable mortgages are those that can go with you when you purchase your next house which allows you to avoid paying discharge penalties. Assumable mortgages are those that the next buyer of your home can take over from you.
Buying a home can be an exciting, life-changing adventure. But like most good things in life, it pays to be prepared. Do your financial homework on the front end so that purchasing a home in Louisville makes all your dreams comes true.