When it comes to signing a mortgage, you deserve to be picky! Shop around until you find the perfect fit. Ensure your mortgage is manageable, and that you have some extra financial cushion each month.
Building equity is one of the primary financial benefits of homeownership. You don’t notice it while it’s happening, but if all goes well, you end up with a significant asset that you can use for almost any financial need.
In the simplest terms, home equity is the difference between what you owe on your mortgage and your home’s current market value. If you owe $100,000 on your mortgage and your home is worth $400,000, then you have 75% home equity. Conversely, if you have a remaining mortgage balance of $300,000 on your $400,000 house, you have 25% home equity.
Getting pre-qualified and pre-approved for a mortgage are both important steps in the homebuying process. While pre-qualification and pre-approval may seem intimidating, they don’t have to be! This article explains both and offers some background for your reference.