The month is off to a great start, your neighbor won’t stop blasting annoying teen pop and your landlord is raising rent. But seriously, if you’re starting to get the feeling, that renting just isn’t cutting it anymore, it’s time to put your head down, and find out what you need to do to buy a home. There are definitely things you can do now to start preparing for a home mortgage, from researching mortgage lenders, to understanding your credit score, and getting your finances in check! For anyone considering taking the leap, I recommend the following steps to be fully prepared.
Note: these are the very preliminary steps you might take, before you even start talking to a real estate agent or checking out properties online, although that’s the fun part!
- It’s time to start saving!
Having enough money for your down payment may be the biggest obstacle you face when trying to become a homeowner. Create a monthly budget and quarantine your savings! You may want to rethink that annual vacation, monthly visit to the movie theatre, or even those 2-5 alcoholic beverages a week (that’s all right?). Although there will be sacrifices to be made, saving up for your home down payment is sure to be rewarding, and by making a few adjustments, you may be able to save up quicker than you think!
Heads up, the typical down payment required for a FHA home loan is about 3.5% of the home price. So do the math. And if you happen to live in a high cost area and that just shocked you, dig in and find out if your city, county or state offers down payment assistance programs for the first time homebuyer!
- What is your credit score? Find out now!
What is a credit score? A credit score is a number assigned to a person that indicates to lenders their capacity to repay a loan as it reflects your previous credit history. Credit scores will range from bad (below 600) to excellent credit (750+). A good credit score can help you to get a lower interest rate on your home loan, which means you’ll pay less interest over time!
If you don’t know your credit score, there are a few free ways you can find out right now. Credit Karma is a well-known option for receiving a free credit score. They will give you your credit score from two different sources; TransUnion and Equifax. It’s also important to know that since not every line of credit (credit card, car loan, etc) is reported to every bureau, your overall score might be different between the two.
- Find Your Rock Star Mortgage Loan Originator
Some people might not put a lot of thought into choosing a mortgage loan originator, but this is a very important decision if you want this intimidating process to go as smoothly as possible. It’s well worth your time to shop carefully for a lender who will hold your hand throughout the entire mortgage process. A rock star mortgage loan originator will help you get prepared for the mortgage process, get you pre-approved, and also patiently explain the terms of various mortgage products to you and recommend the best product for your financial situation.
It doesn’t end there. Now, assuming you decide to give us a call and work with one of our rock star mortgage originators, this individual will handle your application like an true home financing expert and will also offer the most competitive loan terms possible. They’ll also be sure to answer any and all questions you may have.
Make sure to find the right fit for you!
If you’re interested in getting started, please call your rock star mortgage loan originator today at 877-706-5856.