Buying a home is the largest investment most people make in their lives, and mortgages are a valuable tool at your disposal for making that happen. This kind of decision should never be rushed, though. Here at Sky Financial, we want you to know everything there is to know before getting one so that you are better prepared to get the best deal. If you are asking yourself “should I get mortgage” here are the things that you need to know before you come to us.
How do mortgages work?
This might seem obvious, but let’s brush over it quickly to make sure. The bank will look over your credentials, see the asking price of your home, and make the decision on whether or not to loan you the money. You put down a down payment and then the bank pays the rest. You then repay the bank on a monthly basis with interest.
Banks look at your credit, so know your credit score beforehand
Credit score is the financial trustworthiness that the bank can put into you quantified in a number. It is the sum of your financial past and is based off of previous credit cards, loans, and other financial factors. We are a common sense lender, and we will look at much more than just a number. You are far more to us than that. Still, it remains a very important aspect.
Know how much you can afford
Before deciding if you should get a mortgage or not you should know how much you can afford. You need to understand your income minus your expenses, and then see how much is left over. The financial industry uses debt-to-income ratio which is simply the amount of your loan vs your income. We will use this to help determine your ability to manage payments – in general, the lower the better. Most institutions prefer not to go over 40%, but it is still possible to go above that.
Be aware of first-time advantages
The government is aware that a healthy housing market is good for the national economy and our society in general. They offer many different incentives for people who are getting their first mortgage, usually in the form of tax breaks. Find out which ones you qualify for by visiting the government website.
Getting a mortgage is a big deal and one that you need to carefully think over. Here at Sky Financial we offer many different types of mortgages to help you realize your dreams of home ownership. It is important that you understand as much about the process as possible before coming to use. Don’t worry, we will help you every step of the way. If you are wondering whether not you should get a mortgage, take these things into account and contact one of our specialists today.
