What you Need to Know about Mortgages

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When looking at new homes in Richmond to buy, it is important to educate yourself on the basics of mortgages. Familiarize yourself with the terms and practices of mortgages, so you can be prepared for what is to come. Once you understand these basic things, home buying doesn’t seem so stressful.

To help you in this process, here are some things you need to know about mortgages:

  • You should get fully pre-approved. The initial mortgage pre-qualification gives you an estimate of how much you can afford based on the information you give to get pre-approved. Getting pre-approved can give you a more specific amount you can afford and the monthly payments.
  • Do things that help your credit score. This means pay your bills on time and pay off debts as much as possible. Also, keep away from applying for new credit because it can hurt your credit score. Having a high credit score helps you qualify and be approved for a better mortgage.
  • Do your research. Not only should you should make yourself familiar with mortgages, you should do you research on lenders. Shop around and see who can give you the best deal. It could save you a lot of money.
  • Know the difference between a fixed rate and an adjustable rate. With a fixed rate, you have the same monthly payment with the same interest rate throughout length determined. However, typically they are for a longer period of time, and you pay a lot on interest. This mortgage plan allows you to pay the least amount each month and is great for those who plan on staying in the home for a long period of time and want stability. With an adjustable rate, the time period is shorter, and your interest rate can change and can be lower. However, you pay more each month. This mortgage plan is better for those looking to gain equity and sell their home within a few years. Find out all the details and determine which is better for you.

The first step in buying a house is doing your research. It makes buying a home easier and stress-free. At Boone Homes, we strive to make you happy through the process from building your dream home to signing the dotted line. To learn more about our homes for sale in Richmond, visit www.BooneHomes.net or call 804-708-5127.