Before you know it your time has flown by and now you’re are no longer changing diapers, attending their sporting events, senior prom or catching that college graduation! Where did the time go? Don’t worry you’re Parenting never ends. In fact, when your children are about to step out into the world on their own, you’ll want to help them on their way, especially when it comes to buying a house. As your sons or daughters prepare to take the plunge into home ownership, make sure they follow three crucial tips that will help them during the mortgage process.
Don’t Bite Off More Than You Can Chew
One of the biggest mistakes that homeowners make is choosing a home that is beyond their price range. Your children need to remember that they are going to be paying for their home for a long time. A crushing house payment could be difficult to manage.
In order to find a reasonable mortgage, you need to look at the numbers. The bank, or mortgage lender, will generally look at a client’s income, debt, and the current mortgage rate to determine an acceptable amount when purchasing a home. Your children can look at their own budget, lay out all of their costs, and determine how much spending room is left for a house payment.
Choose A Shorter Term For A Mortgage
When the time comes to sign the dotted line, the mortgage lender will offer various payment terms for your child’s home loan. Twenty-five to thirty years is the typical term for most mortgages, but the sooner the mortgage is paid, the better. Advise your children to choose the shortest possible term while still living within their means.
Make Extra Payments When Possible
Your children can pay their mortgage off sooner by making extra payments. While this may seem like a challenge, it can be accomplished with careful budgeting.
Making one extra payment a year will shorten the length of the loan and put more equity into the home. Whether your children plan on staying put or want to buy another home down the line, they’ll appreciate it when they have paid off a considerable chunk of their mortgage.
Getting a mortgage is a rite of passage and a milestone that thousands of Americans encounter every year. Make sure that your children get the best mortgage available by following these tips. For more information on finding the perfect mortgage fit or if you simply want the best rehabbed homes out there contact Clean Green Real Estate today at 724-207-1129 for we are honored to be of service to you.