Leafing through a property magazine, you can’t help but stare in awe at the glossy pictures of the featured celebrity homes. After the admiration dies down, you are left to wonder what it would take to buy, own, and live in such a property. In most cases, nothing short of winning the lottery would help the matter.
Be that as it may, that should not dissuade you from buying a home and graduating to a homeowner. With a little bit of effort and planning, you can own a home, regardless of your income level.
Clean up your finances early
It is no secret that an average home will set you back at least $200,000, which is no chump change. The kingly price tag only serves to emphasize the need for a proper plan. Faced with such a dilemma, most people turn to mortgage loans to fund the project. You too should take that tried and tested route.
Just approach it from the point of knowledge. Lenders evaluate your creditworthiness before granting you a loan. Typically, this is the sum of your financial history expressed as a score – credit score. As with your GPA, the higher the score, the better your chances.
If you avoid carrying too much debt, pay your credit card bills on time, and don’t default on payments, you are in the clear.
Negotiate your rates
Negotiate your rates It often comes as a surprise to many people to realize that mortgage rates are negotiable. Yes, they are, but you must be well poised to take advantage of this opportunity. First, you need to boast a high credit score.
A high score, over 720, attests to your stellar financial conduct, which takes you off the high-risk list, making you eligible for the best mortgage rates in Salt Lake City. Secondly, put up a sizeable deposit for the house you wish to buy as it proves your commitment to the process.
It also bears the added advantage that you will borrow less money and escape the costly home insurance payments. Despite the skyrocketing home prices, you too can own the roof over your family’s head on a lean budget.
You only need to plan the process properly and avoid common mistakes that make the process costly.