Buying a first home is a big step, so it’s normal to feel a little overwhelmed with the decision to make such a large purchase. To help you prepare for this milestone, here are some helpful tips to keep in mind as you get ready for the home-buying journey.
Tip #1: Build your credit. Your credit score is important to lenders because it helps determine how risky you are as a borrower. If your credit score needs some improvement, be sure to pay your financial commitments on time and keep credit card balances low. And don’t forget to check your credit report to make sure your information is accurate.
Tip #2: Save, save, save. Come up with a game plan on how to achieve your down payment goal. This can include cutting back on your spending, putting off that vacation or big purchase for a bit longer, and bringing in extra income from a side job. Saving for a down payment can seem like a daunting task, but it just takes some time and patience.
Tip #3: Know your options. Take the time to learn about the different borrowing options so that when you’re ready, you get the right mortgage loan for you. If you have questions, our experienced mortgage loan officers can evaluate your situation and recommend the most suitable mortgage financing.
Tip #4: Get pre-approved. With pre-approval, you’ll know the value of the home you can afford and the estimated size of your monthly mortgage payments. And, the letter of loan approval will give you negotiation power and advantage over other potential buyers because it indicates you are a serious buyer who is ready to make a decision. With great pre-approval, comes great buying power.
For more information on the home-buying process, read the full blog article here.
