Realty411 Magazine Featuring Eric Counts, Credit Nerds | Page 58

7 Personal Finance Questions
to Ask Yourself
Before Getting a Mortgage
Dr. Teresa R. Martin, Esq.
Are you ready for a mortgage? It’s a big step that
requires careful planning. A mortgage will affect
your financial future for years to come.
Before you sign that mortgage, consider these finance
questions:
1. What is your credit score? Credit scores affect
mortgage rates.
• Before buying a house, check your credit score. Should
you raise your score to get a better interest rate? In
general, high scores with no late payments during the
last three years are enough to get good rates.
2. Are you capable of handling maintenance costs? It’s
important to consider the cost of maintenance before
buying a house.
• The mortgage is only one part of the total cost of owning
a house. Maintenance is another important piece. Will
you be able to pay for a new roof or air conditioning
system when the current ones wear out?
• Does your monthly budget include enough savings for
maintenance?
• It’s also important to consider DIY projects and hiring
"A mortgage
is a responsibility
that affects multiple areas
of your financial life.
Before you buy a house,
consider how your current
financial situation
will be affected and plan
for emergencies."
others to complete tasks. House maintenance can involve
expensive and ongoing projects. Are you ready to pay for
these costs?
3. How secure is your job? Before signing a loan,
evaluate your job security. Will the work last? How will
you handle changes?
• Evaluating your job future is part of planning for a home
purchase.
• Consider emergency funds and savings in your plan. If
your job situation changes, will you be able to continue
making monthly mortgage payments?
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