Don’t let the unfamiliar processes of taking out a mortgage in Flagstaff scare you when contemplating to buy a home. Given that a mortgage is likely to be the largest debt that you’ll ever carry, you can’t afford any oversights.

Successful homeowners make smart decisions that see them enjoy every aspect of the home buying process. They create a budget and stick to it, negotiate great interest rates on their mortgages, and settle for fixed, predictable interest rates.

Be approaching the mortgage process tactfully; you make significant strides towards being a happy and satisfied homeowner.

1. Don’t make yourself “house poor”

Smart people realize that getting a mortgage is on the first step in the long journey that leads to owning their home free and clear. As such, they don’t commit more than a third of their income to repaying their mortgage. You too would be wise to borrow a leaf from their book.

Experts advise that you cap the payments at 30 percent of your income if you have credit card debts or student loans. On the other hand, if you don’t have any outstanding debts, you can push the limits to about 40 percent.

Spending a large chunk of your income on housing impacts your ability to meet other financial obligations. You’ll have considerable challenges saving for retirement, replacing an old car, or setting up a college fund for your kids. It might leave you to lead a pretty miserable life.

2. Don’t jump at the first offer

If you find that you’re excited by being prequalified for a mortgage, you need to slow down your roll. That is a big step in the right direction, but it’s not enough to go on, not yet anyway. The excitement only serves to indicate that you don’t have a firm grasp on what the mortgage process entails.

It means that you’re one step away from making costly mistakes that could potentially cost you tens of thousands of dollars. It would be wise to take some time to brush up your knowledge to understand how a mortgage works.

You need to realize qualifying for a home loan happens on merit and not by chance. That means you have the power to negotiate terms on the mortgage if you have sufficient leverage.

3. Don’t ignore the down payment

If you want your potential lender to take you seriously to the point of offering you excellent rates on the loan, you need to put some skin in the game. Putting some money down, preferably about 20 percent of the asking price, marks you as a committed borrower.

The deposit increases your chances of qualifying for affordable interest rates while letting our escape the private mortgage insurance. Low-interest rates save you a considerable amount of money over the life of the loan.

Successfully owning a home depends on getting an affordable mortgage right from the get-go. That means getting the best rates on the market and settling to friendly and affordable terms. Doing so saves you a considerable amount of money over the life of the home loan.