Before Buying a Home, Get Your Finances in Order

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Dennis Nottingham
May 08, 2014
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Having your own home is dream people nurture, but not everyone would be financially competent to own a home. So before you start dreaming of your own home ensure that your finances are ready because you don't want to struggle to make money later on. Here are certain things to consider when you buy a Indianapolis homes:

Find a mortgage broker

You need to choose a mortgage broker before you start with home hunting. A mortgage broker is a person who stands between you and the bank and help you get the funds needed to purchase a home. The broker will help you with the paperwork and passes on the same to the bank/lender. While the brokers do not lend money to people themselves, they help in finding the right loan for them. It is under their sole advice that most homeowners apply for loans and get them.

Order a free credit report

It is a known fact that to apply for home loans, you must have good credit reports. Of course, there are many ways to get your credit report, but you have to pay for them. You can also request by mail or telephone. To get the free report, you need to send in two copies proving your identity; could be your health card, diverse licence or social insurance card.

Determine a down payment

To determine your down payment, you need to figure out how much you are willing to pay and how much you would have to borrow. If you can pay around 20% of the price of the home, then it would be perfect because then you would qualify for conventional mortgage. As majority of Indianapolis homeowners are couples in their 20s and 30s, they are looking to spend somewhere between $320,000 and $370,000. The basic thing is this - the more you pay for your down payment, the less you pay as mortgage fees.

Get a pre-approval or pre-positioning letter from mortgage broker

Having an official letter signed by your mortgage broker would prove that you are capable of getting a loan. The broker should be competent enough to ask the client the necessary details before handling the paperwork for pre-approval.

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