Being a first time newlywed is such a joyous time in your life. You are still in the honeymoon spirit and your love for someone couldn’t be any greater. Don’t let all of these wonderful things cloud your judgement for when it comes time to buy your new home with your special someone. vLoan, The Modern Mortgage Company is looking out for you both. Here are five common mistakes that newlyweds should avoid while looking for their new home:
1. Don’t forget to review your mortgage
Review your mortgage’s health biannually to see if you qualify for a lower interest rate, shorter term or a different loan type, especially if you have kept your bills low, paid things on time, and time has passed since any previous credit problems. If you bought your home with a FHA loan, you’re probably paying monthly mortgage insurance premiums. If your credit score improves and/or your debt to income ratio decrease, then you may be eligible to refinance your FHA home loan to a conventional fixed-rate mortgage. This switch means that you could possibly get a lower interest rate, change your loan term or get rid of or reduce the costly monthly mortgage premiums to keep that extra cash in your pocket each month!
2. Don’t forget your payments
Even though you have you have your mortgage set and you are both settled into your new home, don’t forget to make your mortgage payments! Missing a payment could affect your credit score, so be on top of things!
3. Keep extra money around for necessary repairs
Never assume that your insurance company is going to pay for any repairs that you want or need done to your new home. Just to be safe, have at least six months worth of your bills saved up just in case something happens to your home.
4. You need homeowners insurance before your loan closes
When it is time for closing, you need to bring proof that you have paid homeowners insurance to your mortgage advisor. If you have an FHA, VA, or low down payment conventional loan you have to pay your homeowners insurance through the escrow account that your lender sets up for you while the loan is in servicing. So when you buy a home, you have to pay the first year’s homeowners insurance in advance and then bring your one-year policy to closing. You’ll also have to bring in an additional two months’ worth of hazard insurance premium (and real estate taxes) at closing so that we can set up your escrow account. After that, with each monthly payment you’ll pay 1/12th of the insurance premium and taxes with your monthly mortgage payment. After the first year and all years thereafter, your insurance company will bill vLoan for renewal premiums, which we’ll pay from the escrow account. Taxing authorities send us those bills as well.
5. Don’t buy the wrong sized house
Make sure that your home is the right fit for you. You don’t want to buy too much of a house for your home situation because then it would be a lot to deal with, but if your family keeps growing you want to make sure that you have the right sized home fit for everyone.
If you need a little help in finding the perfect home, let one of our mortgage advisors here at vLoan assist you. Contact us today or get the process started early with a free rate quote, we can’t wait to speak with you!
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