Mortgage rates are still low by historical standards. And while low rates may be the perfect reason to start shopping for a new place, here are 3 aspects of a mortgage you should also consider:
1. Your loan amount.
The loan amount you get approved for may not be the loan amount you can actually afford. Before you buy, get a sense of how what you’d borrow would translate into a monthly payment. Make sure you truly can afford the home purchase you’ll be financing.
2. Your savings.
Did you know if you don’t have at least 20% of the purchase price saved up, you may be required to pay monthly Private Mortgage Insurance (PMI) in addition to your loan payment? If you’re required to get PMI, you’ll usually be able to stop paying for it every month once you have at least 20% equity in your home.
3. Your credit.
Behind most good mortgages are good credit scores and reports. Do you know how healthy your credit is? Generally, it’s a good idea to check your credit at least 3 months before you’re considering buying a home. With TransUnion MortgEdgeTM, simplify the home loan process and get your:
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What You Need to Know:
There are various types of credit scores, and lenders use a variety of different types of credit scores to make lending decisions. The credit score you receive is based on the VantageScore 3.0 model and may not be the credit score model used by your lender.
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