Are you considering taking the plunge and purchasing your first home? This is both a very exciting and a very daunting decision, and you may not even know where to begin. The truth is, before you even begin shopping for mortgages in order to purchase a home, you need to take some steps to financially prepare yourself. The financial choices that you make prior to applying for a mortgage could affect your mortgage rates. In order to obtain the best mortgage rates available, you need to prove that you are financially responsible. Whether you are interested in buying a condo, a townhouse, or a house, you need to prepare yourself in a variety of different ways. Here are some tips for people considering venturing into the arena of home ownership:

Do Not Make Large Purchases

In order to procure the best mortgage rates out available, you must refrain from making large purchases on your credit card for three to six months before applying for a mortgage. The reason is that you want to have the best possible credit profile when applying for a loan in order to receive the lowest mortgage rates.

Pre-Qualify For A Mortgage

The first step in the mortgage application process is pre-qualifying for a loan. Our mortgage advisors at Scout Mortgage can quickly and easily help you obtain pre-qualification, so don’t hesitate to call us. When you pre-qualify, you might even discover that you possess more purchasing power than you originally thought.

Be Realistic About Your Budget

Have you ever watched HGTV? Many of the home buying shows feature a couple who want a home with a gourmet kitchen, a huge yard, and several extra rooms on the smallest possible budget. Have realistic expectations for your budget and remember that most first time home buyers upgrade to larger homes later in life.

Factor In Other Expenses

The expense of owning a home goes well beyond simply making mortgage payments. You are responsible for utility payments, property taxes, and HOA fees (if you live in a condo). Any time you need to make home improvements or replace one of your appliances, you are responsible for repairs or replacements.

Consider Locations

When looking for a home, location is one of the biggest factors to consider. For instance, if you have kids or you are thinking about starting a family, you would like to live in a neighborhood inside a good school district. However, if you do not want children, you could live in a more urban area that may not have the best school district. Also, take safety into consideration because some neighborhoods look perfectly safe during the day but feel dicey at night. We recommend driving around certain areas at different times of day to get a better feel of its safety.

Once you have taken these necessary steps, you should be ready to apply for mortgages. Our mortgage advisors in Scottsdale are happy to help you obtain the best mortgage rates available. Contact Scout mortgage today for a free appraisal so that you can move into your dream home as soon as possible.