7 PERSONAL FINANCE QUESTIONS TO ASK YOURSELF BEFORE GETTING A MORTGAGE DR. TERESA R. MARTIN
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 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?