Are you ready to buy your first home? Buying a home should be exciting and fun, not intimidating or confusing. Having answers to your questions and help through the process can make it a fun time! Make sure you do a little research but here are some tips to help you along the way!
Clean up your credit. This is one of the most important pieces of the puzzle when it comes to getting a mortgage. Your credit score can help you get a lower interest rate and may also determine what kind of mortgage you get. It could also stop you from getting a mortgage.
- check your credit score. You can look online for credit scores but talk to your lender and get your actual mortgage score
- make sure your credit report is accurate. It’s not uncommon for credit bureaus to report the wrong information.
- pay down high credit card balances – this can help raise your credit score
Become familiar with mortgage terminology. Lenders tend to use phrases that may confuse you. If you don’t understand what your loan officer is saying, ask questions!!
Establish your budget. You want to make sure you can afford that new home! When loan officers qualify you, they may qualify you for more than you want to spend. Figure out what you are comfortable with in a payment. Remember you are the one making that house payment, not the lender.
- think about monthly bills like utilities, loans, daycare if you have children
- living expenses – clothing, food, entertainment
- taxes, insurance
- hobbies you have that may cost you money and that you do not want to give up
Don’t choose a lender solely on interest rate. You want the lowest payment, but you also want to make sure you get to closing! Make sure you choose a loan officer that will work with you to get you the best program for your situation.
Get pre-approved, not just pre-qualified! You want to make sure your lender sees your income and asset information, that they pull your credit report and also run your file through an automated underwriting system.
Don’t make any financial changes during the process. You don’t want to purchase any furniture, a new car or any other major purchases that could affect your loan approval. Avoid changing employers during the process.
Get a home inspection! That will help you know if there are any potential issues with your home. This can save you money if there are issues- better to know ahead of time!
Have fun!! There are a lot of details that go into buying a home, but make it fun! Have fun shopping for new homes. Think about what you can do to the home once you close on your new purchase! Try to enjoy the process!!
Leslie Vanderwerf, NMLS ID#335509, Cross Country Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
