Click stars to vote (left is low, right is high)

Pride of ownership, appreciation and tax benefits are just a few reasons people decide to purchase their first homes. Of all the decisions you’ll make, deciding to purchase a home is one of the most important and significant steps you’ll take towards securing your future. The process can be intimidating at first but if you do your homework, you can prevent the complications and disappointments that the unprepared face during the lending process.

 

 

CHECK YOUR CREDIT

Before applying for a home loan, check your credit report. According to federal law, you can attain a free copy of your credit report once every 12 months. The higher your credit score, the lower your interest rate. Additionally, checking your credit score before you apply for a loan affords you the opportunity to resolve any disputes or clear up any blemishes before you approach a lender.

 

 

PAY OFF DEBT

When you apply for a loan, one of the factors lenders will evaluate to determine your eligibility is your debt-to-income ratio. If your debt-to-income ratio is higher than 28%, you may want to pay off high interest debt, such as maxed out credit cards before you apply for a loan.

 

 

BOLSTER YOUR SAVINGS

Save, save, save. While many lenders have a variety of programs designed to help you get to the closing table without exorbitant amounts of money being paid up front, there can be a lot of costs associated with home buying. From earnest money to attorney’s fees, the costs can add up.

 

 

MAKE A BUDGET

You often hear advertisements stating that you can own a home for as much as you rent. And while in some cases this is true, many don’t consider the additional expenses incurred when you don’t have a landlord to cover the cost of upkeep. Lawn maintenance, repairs, and higher utility bills can be costly. It’s important to make a budget and calculate how much you can afford taking into account other expenses besides your mortgage, taxes and insurance that can become burdensome down the road if you’re not prepared.

 

 

GET ORGANIZED

Once you purchase your home, it will be important to maintain records pertaining to your new house. So start ahead of time by making sure your records are in order. When you apply for your loan, the lender will require W-2 forms, proof of income, and proof of assets. Have copies of these items organized and ready to submit upon the lender’s request.

 

 

RESEARCH AND ASK QUESTIONS

If you have questions about the home buying process, the internet is a great tool. It’s always a good idea to do as much research as possible to ensure you’re well informed. Talking to a mortgage originator is also a great resource. An experienced originator can answer all of your questions and help you make your dreams of homeownership a reality.

 

By being prepared, you can put your best foot forward and step into your new home in no time. Give us a call and let us guide you in the steps toward owning your first home.

Share This Post - instructions included