On The Money

Planning Your House Mortgage in Four Ways

House miniatureYou have started your life with your own family while enjoying the fruit of your hard work. Now, you’re up to getting your dream house but will be needing financial assistance to complete the purchase.

While getting a loan is not easy due to recent economic challenges across the nation, mortgage companies in South Jordan, Utah can make things easier. They are committed to giving invaluable assistance from planning up to the end of the loan process.

As buying and mortgaging a property could be daunting, it is important to consider these factors to avoid problems in the future.

1. Know your preferences and make a research.

While there are a lot of financial companies offering the same kinds of services, it is important to get a closer look at what kind of financial assistance you will need. This will depend on your capability to pay based on your salary and expenses and the amount of the property you will buy. Mortgage companies compete on rates and terms of payment. However, it will also be necessary to look for a company you can trust. The quality of customer service a company provides can either alleviate your stress or worsen it.

2. Know your financial capability.

Planning will help you reach your goal. You don’t want to be unprepared once problems arise just because you fail to plan. With the information you have gathered, it is easier to assess your financial capacity based on your salary and the taxes you should pay, savings and daily expenses. Apply for the loan based on your financial capacity to amortize what you can afford. It is also good to know your credit score. It is a huge factor that the lenders consider for your loan approval.

3. Get your documents ready.

Companies have protocols for approving the loan. You don’t want to jeopardize your chances just because you are not prepared with the required documents. Basic loan documents required may include bank statements, W2, valid IDs and proof of homeowner’s insurance.

4. Set aside an emergency fund.

As you face a long-term investment, it is important to know that the down payment, solicitor’s fee, documentary stamps and eventually monthly amortization are among the many things you need to settle. An emergency fund which is equivalent to at least six months of your monthly income should be set aside in case of unforeseen events. This should cover your family’s living expenses, loan amortization, insurance premium, your child’s school expenses and hospitalization.

Careful planning will not just make you attain your goal, but this will also secure the future of your family. Are you ready to talk to a mortgage representative to help you with your home purchase?