credit, if applicable. You’ll need to use a credit repair company, but do your research first to ensure you are working with a reputable (and affordable) company.
Step #4. Consider ALL Expenses
We’ve talked about this before, but as a reminder, in addition to the down payment and monthly mortgage payments for home buyers, you’ll need to consider all homeownership-related expenses. Many buyers forget to do this, even if they’re longtime homeowners who are in the process of downsizing. Keep in mind closing costs, property taxes, homeowner’s insurance, and maintenance costs—and then budget for them!
Step #5. Understand Mortgage Rate Locks
“Obtaining the lowest available interest rate on a mortgage should be every prospective homeowner’s objective,” says Lisa Smith from Investopedia. The reason is simple: Lower interest rates mean lower monthly mortgage payments, which means affordability in the short term, and significant savings over the long term, which is good news for you as you transition into your golden retirement years. But me telling you to “lock in a rate” isn’t enough. You need to know when to lock in your mortgage rate, since they can change so easily and frequently, due to the housing market changing all the time, up and down, etc. “While advertising may have lured you in with an impressively low mortgage rate, that rate might not be available months from now when you close on your mortgage,” says Smith. If you’re unsure or concerned about the state of the market in your area, or worried rates will climb before closing, your best bet
144
Powered by FlippingBook