To handle a mortgage for a resale home effectively, first secure pre-approval to determine your budget and strengthen your offer. Calculate closing costs, which typically range from 2% to 5% of the loan amount, and factor them into your total expenses. Opt for a fixed-rate mortgage if planning long-term ownership, as it offers stability against interest rate fluctuations. Prioritize debt-to-income ratio management to avoid default risks, and consider refinancing options post-purchase if market rates improve.

The steps above are critical due to the significant financial implications of resale home purchases. Pre-approval increases offer competitiveness, with 68% of buyers who pre-qualify secure homes faster (National Association of Realtors, 2023). Closing costs averaging $4,800 to $15,000 (Bankrate, 2023) directly impact affordability, while fixed-rate mortgages save homeowners $150,000+ over 30 years compared to ARMs (Federal Reserve, 2022). Default rates for mortgages on resale homes are 3.2% annually, underscoring the need for stable debt-to-income ratios (U.S. Census Bureau, 2023). Combining pre-approval, cost analysis, and fixed-rate loans mitigates financial risks and maximizes equity retention.