It is pretty rare nowadays to hear about someone scooping up a property sale or foreclosure in Jacksonville without first applying for a mortgage. While there are some who still manage to pay cash for properties, it is not common. For most of us, the first step to purchasing a property is to contact the bank and start the mortgage application process.
For some people, getting a mortgage is about as daunting as it sounds. It isn’t always possible to wake up one morning, decide you want to buy a house and get approved for a mortgage in one shot. For most people, applying for a mortgage takes a lot of time, deliberation and work.
Here are three things to consider when applying for a mortgage to purchase your next property sale in Jacksonville:
1. What’s your credit score? A good credit score will make or break your efforts to get a mortgage. If your credit score is less than ideal, then it might be a good idea to hold off until you can restore it. Paying down your credit cards and making payments on time can significantly boost your credit score over time. Ideally, you’ll want a credit score that is over 600.
2. Build your down payment. The larger your down payment the greater of a mortgage you’ll be able to get, in most circumstances. You shouldn’t drain your savings on a down payment. Most borrowers require a down payment that falls somewhere in between five and 20 percent of the total home price.
3. Shop around. Don’t take the first mortgage offer you come across. Contact credit companies, insurance companies and credit unions to find the best rate for you. Ask your friends, family members and co-workers about their interest rate and lender to find your best option.
There are also different types of mortgages that are worth consideration. Some people qualify for mortgages backed by the FHA, while others are better suited for private loaners. Explore all of your options before making a final decision, and don’t rush the process!