Buying a house in 2020 is challenging at best. The market changes by the day and more buyers than ever are looking for properties at the same time. The competitive market makes it tough but not impossible to buy the home of your dreams. But before you can, you need to make sure you can finance the purchase.
4 Tips for Financing a Home Purchase in 2020
Financing a home is easier than you think as long as you’re ready before you submit your first loan application. Here are a few key tips to help you streamline the process.
1. Have a Large Down Payment Available
Mortgage lenders are starting to get pickier about the applicants they’re willing to lend to. The best way to make your application more competitive and more attractive is to have a large down payment saved up when you apply. If you can, save more than the traditional 20 percent of the home’s asking price. This shows lenders that you’re serious about homeownership and are financially responsible.
2. Get Your Documents in Order
No matter what type of loan you apply for, you’ll need to get your documents in order. Compile bank statements, tax returns for the last few years, and any other financial statements that show your income and earnings. You’ll need to submit these when you apply.
3. Shop Around for the Best Rates
Though lenders offer the same types of loans, they offer different interest rates on those loans. This means you’ll need to shop around to make sure you’re getting the best rates for your home purchase. Compare the quotes you receive in detail and choose the lender you’re most comfortable with.
4. Make Sure You Can Afford the Home
The key to successfully financing a home purchase is to only make offers on homes that you can reasonably afford. Use a mortgage calculator to estimate the monthly payments for each house you’re considering. If you can afford the payments, make an offer on the house. If you can’t, look for a different property.
Financing a Home in 2020 Is Doable
Though financing a home purchase in 2020 is more challenging than it has been in previous years, it’s still possible. Follow these proven tips and you’ll be able to get the best loan for your dream home. Just make sure you work with a reputable mortgage broker every step of the way. Contact our team to learn more.