So, you’re ready to buy a home? Congratulations! If you’re at this big step of your life, you’ve already accomplished so much, and you should be proud. We have a few suggestions to jump-start your loan journey to make the whole process a little easier on you.
Credit Score
If your credit score is a little lower than you’d like, there are ways to elevate it. First, you can make sure your credit report is free of errors. You can obtain your credit report from Equifax, TransUnion, or Experian. These are the three major credit bureaus, and they’re required to provide you with an annual free copy of your report if requested. This is an easy first step to take because it’s not uncommon for a credit report to be inaccurate. Another way to help a lower credit score is to start paying off the highest interest debts first. As you go down the list of paying off debts, your debt-to-income ratio will improve, and you’ll get a better rate on a mortgage. If your score is lower than about 580, you’ll need to do some repair work for a bit.
Get Pre-approved
We have another article specific to getting pre-approved—you can find it here. Getting this pre-approval will be a great advantage during your home search. Offers will be accepted more readily if you have a solid pre-approval from a reputable lender, like ours. Real estate agents also love this because it provides an important guide for search criteria and how much house you can actually afford. This saves you lots of time and frustration from getting excited about a home that ends up being out of your price range.
Ask about Fees, Down Payments, and Interest Rates
When you meet with us, don’t be afraid to ask questions about applicable fees, what down payment requirements may be needed from you, and what interest rate options you have. We’re open about all of this because we have nothing to hide. If you’ve met with someone who doesn’t want to disclose this kind of information, you need to walk away. There are always going to be fees somewhere, and we’ll make sure you know what they are and why they’re necessary.
Don’t Have a Real Estate Agent? We can Help.
We often see people try to navigate the housing waters alone, and usually this ends up in frustration and lost money. Home buyers sometimes rely on the seller’s agent to manage both sides, and that’s not always wise. We can recommend real estate agents that we work with regularly and know they’re out for your interest, not theirs.
Be Honest About Your Budget
You want the most bang for your buck, and it’s tempting to aim high when buying a house. Today’s market is tough and there are many times you’ll need to write an offer over list price. However, be honest about your debt-to-income ratio and your spending habits to ensure you get into a home loan that isn’t going to stress you out.
Ready to pull the plug? Give us a call today.
