Those Two Pesky Words: Credit & Mortgage
Wanna buy a new home? Here are a couple seemingly obvious but helpful tips related to your finances that will help you plan ahead.
First things first: review your credit.
It’s always good to have an understanding of your credit standing, especially if you’re a prospective home buyer. Now is the time to look into your credit to work on paying back overdue accounts or tending to oversights that previously made a poor reflect on your credit score. This clean-up process presents the opportunity for lenders to offer you a deal on a mortgage.
If you can swing it, pay more on your mortgage.
Like, yeah, obviously, right?
Honestly speaking, if you have a little extra money to spend and are looking to invest it wisely, put it toward your mortgage.
In fact, doing so will reduce future interest costs and save you money, according to a consumer mortgage report by the Federal Deposit Insurance Corporation.
“By adding a little more money to your monthly payment or sending all or part of your payment in sooner than you’re scheduled to, you can repay your loan faster and cut your total interest costs by thousands of dollars over the life of the loan,” said FDIC’s associate director, Luke Brown.
Doubling or even tripling your monthly payment could help you pay off your loan much faster than if you just pay the minimum monthly payment. With luxury real estate, the prices can be high, but the interest can be even higher. Whatever you do, you should always work on getting a better deal for your mortgage. Luxury real estate is a great investment, but if you’re overpaying, there’s just no point in investing in the first place.
Check in with us and we’ll help you find that luxury home first, and then we’ll help you put a plan of action in place before you sign for your mortgage