With the housing market getting more competitive, the home supply in the US is shrinking while the demand continues to boom. As a result, home prices are increasing across the country, including here in our home state. This is why more people now rely on mortgage loans in Alabama to realize their dream homes. However, first-time buyers still need to keep a few things in mind.
A renowned insurance company in Montgomery, Alabama, Jackson Insurance Company provides some valuable tips when applying for your first mortgage.
- Maintain a Good Credit Score
This will increase your chances of getting your mortgage approved. Make sure to pay your debts on time, avoid a new credit in the meantime, and correct possible errors in your report.
- Save for Down Payment
Opt for reaching at least 20 percent of the home price to potentially reduce your mortgage interest rates. Otherwise, you may need an insurance agent for a mortgage insurance plan, which mainly covers the lender NOT you.
- Save for Closing Expenses Too
Closing costs mostly pay for administrative works, such as appraisal fees, escrow fees, and transferring property ownership. Expect your home loan to increase by 2-5 percent because of this.
These are just some of the tips for first-time buyers like you. If you need more details about our prepaid legal, juvenile life insurance, and mortgage options, plans, or policies, reach out to our team at any time.