With all the different Fairfax mortgage lenders that are available to choose from, you’re probably at an utter loss for where to even begin. With the answers to a few simple questions, you can easily begin to eliminate options, which will make the entire process much easier.
The first thing you must do is to calculate how much you can afford to pay for a mortgage. Most lenders use the rule of thumb that all of your housing expenses combined, including taxes and insurance, should not exceed more than twenty-eight percent of the household’s gross monthly income. There are exceptions that are made for special types of loans, including the Federal Housing Administration, or FHA loans, and loans guaranteed by the Department of Veteran’s Affairs, or VA loans.
Though you’ll learn of many different types of loans, they all fall into only two categories: fixed rate mortgages or adjustable rate mortgages. With a fixed rate mortgage, your interest rate will never change, unless you choose to refinance your home at a later date. The adjustable rate mortgages usually start with a very low rate that fluctuates according to the economic climate. Many choose the adjustable rate for the low interest rate and refinance with a fixed rate at a later time.
The packages that mortgage lenders offer vary from institution to institution. It’s a great idea to discuss possible lenders with your real estate agent, because your agent has been in the business long enough to know who will get the job done. Always conduct your own research, though, and don’t be afraid to interview the lenders before handing over your personal information.
There are so many other things that go into buying a house. Your loan could fall through without the proper inspections and insurances on the house. Between the loan approval and the close of the sale, your new home must have a title insurance policy, homeowner’s insurance, termite inspection, a completed survey… the list goes on! Your real estate agent and mortgage lender should have everything well in hand at all times, but it’s always good to be educated on the process.
Don’t go into the process backwards. If you find your dream house, only to discover during the lending application process that you’re not qualified for the purchase, it can be absolutely heartbreaking. Be sure to go into the situation well prepared and educated, as well as pre-qualified, so that the purchase of your new Oakton home is as smooth as possible.
