Managing Your Mortgage Payments

In today’s real estate market, home buyers are faced with an abundance of homes from which to choose. In addition, mortgage rates are incredibly affordable.

Knowing how to manage finances is extremely important as a future homeowner. Once you’re given the keys to your new home, you are responsible for not only the monthly payments but also the upkeep of your home and yard.

Make a list of the following points:

Create a household budget and stick to it. Factor in expenses including your mortgage payment, childcare costs, utilities, food, entertainment, (eating out, movies, gifts, etc.), and annual and semi-annual obligations. Remember to factor in taxes and insurance if they are not included in your mortgage payment.

Keep in mind you need to make your mortgage payments on time. You’ve worked hard to buy your home and you should not jeopardize it by being late or falling behind on the payments. If you have late mortgage payments, your credit rating will be damaged, and failing to pay can lead to foreclosure. Setting up an automatic payment is a great way to be sure your payments are made on time. However you decide to make your mortgage payments, make sure your mortgage lender receives your payment on or before the due date.

Finding the right loan is the first step in managing not only your mortgage payments but also your whole budget.  After all, your house payment is probably your largest monthly expense.  Call (478) 477-9455 to talk with one of Envoy Middle Georgia’s experienced licensed, mortgage bankers who will help you find the loan that is best for you.  

Tips for First-Time Home Buyers

Most financial analysts would agree that now is a great time to purchase a home. With mortgage rates at historical lows, first-time home buyers are faced with numerous opportunities to purchase the home of their dreams. 

Now you’re ready to start the process! We’ve compiled a few smart strategies for you.

1. Create a budget: Develop a household budget and stick to it. You’ll need to factor in expenses such as your current mortgage payment, childcare costs, monthly household expenses (for example, utilities, food, etc.), annual and semi-annual payment obligations and other miscellaneous expenses. Once you’ve set your budget, you can begin the home buying process.

2. Make sure you have the right credit score:  Many first time homebuyers chose an FHA loan because it requires the smallest down payment – only 3.5% of the sales price.  FHA loans are available with a minimum credit score of 620.  However, borrowers with a score of 640 or better will get a lower interest rate. Conventional loans require a credit of score of 640. The higher your score, the lower your rate will be.  Scores of 760+ will get the best rates! For more information, read Pre-Qualification Process: How To Come Prepared To Meet Your Loan Officer.

3. Get pre-qualified: The prequalification process is an important step, whether you’re a first-time home buyer or not. Finding the right loan for you requires an accurate analysis of your individual financial situation.  Talk with an experienced, licensed mortgage banker at Envoy Middle Georgia and let us assess your unique financial situation.

4. Understand loan costs:  Discussing the various types of mortgages with an Envoy mortgage banker is an important step in understanding the costs of a home loan.  Envoy Middle Georgia offers an array of loans, FHA, VA, USDA, and conventional loans.  Each type of loan has different fees so understanding the costs is important.

   

5. Gather important documentation: As part of the loan process, your Envoy Middle Georgia mortgage banker will ask for numerous documents at the time you make a formal loan application. Different types of loans require different documentation but all loans require some type of legal identification, your last two pay stubs, most recent two years tax returns with W2s, and your two most recent  bank statements.  Your Envoy Middle Georgia mortgage banker will discuss other documents they will need after they have reviewed your unique situation. If you wish, you may provide these documents when you prequalify for a loan but they are not required at that time. 

Contact us today!