Getting your very own house in cities like Pigeon Forge Tennessee can be both exciting and frightening at the same time. It marks a whole new stage in your life and helps you prioritize the things that are important. It may be frightening at first, but preparing for it may turn the odds of success on your side. Knowing the most common fears that every first time home buyers have may boost your self- esteem and may even help you decide if you want to get your own mortgage or not.
I don’t have enough money to pay for a down payment.
All mortgage companies or lenders would ask for at least 20% before the signing of the contract. The initial down payment will be deducted from the principal balance, making your monthly car payment a little bit lower than what it’s supposed to be.
I owe too much debt.
Learn how to manage your bill. Don’t wait for the time when you’re so heavily in debt that you can’t afford to get a mortgage for your house. People who have a much lower debt- to- income ratio have less chances to get their loan approved.
My income is too small.
Most lenders would check if your salary can manage your monthly housing costs. It should be no more than 28% of your monthly gross income. If you think that it’s not enough to buy the house that you are looking for, then look for less expensive properties that require a much smaller mortgage.
My credit score is not good.
Having a credit score of 708 and even a much lower 689 may cost you a bit of some challenge with getting a pre-approved mortgage. But you can still change the tides by making sure that your monthly bills are up to date. It may not change your credit score overnight, but it will gradually help it improve little by little. The target credit score is 756 and above. Once you’ve reached that, there are higher chances that your preapproved mortgage will get approved.
Getting my own house costs more than renting.
Renting may be cheaper for now, but it can’t be considered as an actual investment. Studies show that rents’ rates are increasing at an even faster rate than home prices. Getting a house is like an investment which doesn’t depreciate as years go by.
Mortgage rates are terribly high.
Interest rates can be affected by different factors. You can choose a much longer mortgage length to lessen the cost of your loan. The longer your mortgage length is, the smaller your monthly payment will be. However, this may cost you more in the long run since you’ll have to pay since you’ll be paying longer for your mortgage<< Back to the list.
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