Top 5 home loan tips
Choosing the right home loan for your budget and home requirements is key to paying your loan on time. Here are some home loan tips that will help you make a difficult decision a lot easier.
Start saving for a down payment – Your down payment will depend on your lender and the type of loan you choose. Most home loans will require a down payment that ranges from 2.25% – 20%. To start saving for your down payment look at putting away a percentage of your salary each month.
Check your credit score – A good credit score will help you get a better deal on your home loan. Consider applying for a credit report and look at ways to improve your credit score.
Get your financial documents in order – Most lenders will require a long list of financial documents to accelerate your loan application. At the minimum, you will need your last two pay slips, your recent W-2, last two years of tax returns, and current bank and brokerage statements.
Use a mortgage calculator – Mortgage calculators will help you understand how much you can afford. Consider different scenarios to look at the best options for you.
Compare offers – All loans are not the same, some will be more expensive but may include other benefits. Therefore, list out all the options before you finalize a lender. Start off by comparing the components of a standard mortgage with what you’ve been offered.