The median price of a home is currently just under $200,000, which bars many buyers from buying a home without having to apply for a mortgage. Considering the huge numbers involved, it can be easy to make a costly mistake in knowing how much home you can afford and what you’ll be paying every month. Be careful to avoid common mortgage calculation mistakes when it comes time to embark on the road towards homeownership.
It’s imperative that you know what your credit score is as it will factor heavily into the interest rate you receive, which can potentially mean hundreds of thousands of dollars in savings or additional expenses over the life of the loan. If the score is bad, see what you can do about raising it before starting the buying process. The better the score, the more it will work in your favor.
Buyers also forget to take the time to do some comparison shopping. Every lender has its requirements, terms, and criteria when it comes to home loans, and there may be one that works better for you than the other. If you can ask for a quote within fourteen days from multiple lenders, it will be viewed as a single inquiry on your credit score.
Finally, always remember that the mortgage loan is only a part of the whole equation. Property taxes, closing costs and other fees should not be overlooked.