Buying a home is exciting, and it is also one of the most significant purchases you will ever make. For homebuyers, it is important to find a house in the right location, with the proper amount of bedrooms and that is a space you want to call home. While the little details like hardwood floors and quartz countertops are fun, you also have to think about all of the money factors as well. Not only do you need to be aware of what you can truly afford, but you should also do your due diligence when it comes to getting the best possible mortgage.

1. Get several quotes.
You should never feel obligated to go with the first mortgage quote that you receive. Take the time to obtain quotes from several different lenders, and you can even let them know that you will be comparing everything that you receive. That little bit of information may result in lenders giving you a better quote so they can stay competitive against the others.

You can go about getting these quotes a couple of different ways. Handle the legwork yourself, or you can hire a mortgage broker to compile all of the information for you. While you will have to pay the mortgage broker for their work, that fee may be worth it if they are able to get you a fantastic interest rate that you probably would not have gotten on your own.

2. Stock up on savings.
Aside from having funds to cover any emergency expenses, there are several reasons you should try to increase the amount in your savings account when you are trying to purchase a home. First, you will need to have money to cover the down payment. If you have enough cash to cover 20% of the purchase price, you can get around having to pay private mortgage insurance, which is usually somewhere between 0.3% and 1.15% of the loan.

Additionally, lenders are going to look at your DTI (debt-to-income ratio) before you are actually approved for a loan. On average, lenders will want to see a DTI below 43% before you are able to qualify for a mortgage. Hence, you may need to use some of your savings to pay down existing debt.

3. Consider special programs.
Depending on your situation, there may be a government-backed program that can help get you the best possible mortgage. From the Federal Housing Administration to the Good Neighbor Next Door Program, there are a variety of special programs that you should research.

To find your dream home once you know your home mortgage capabilities, contact the team at Henderson Properties. We provide support and availability to meet all of your expectations.