New year, new home — make your resolution come true.
The arrival of the New Year inevitably brings with it a whole host of resolutions, hopes, and aspirations for the next twelve months. While we can't help you get to the gym more often, eat healthier, or finally wrap up some personal projects that have been lingering, there's a specific resolution that we can help you try to attain: homeownership.
If you haven't owned a home before, attempting to buy one can seem intimidating. It doesn't have to be, however. We're here to help. So, if you think this is the year you want to check "become a homeowner" off of your resolution list, here are some things you can do to get ready:
There are several loan types, particularly FHA loans, which allow you to put down far less than 20%. As with all the points on this list, we recommend that you speak to one of our loan officers to see what loan type fits your unique situation and needs. In general, though, it's a good idea to beef up your savings as you start this process.
There are several factors that can affect your score, including (but certainly not limited to) your credit payment history, the total amount of debt you have, and the length of your credit history. If you can get your credit score in good shape, you'll look more attractive to potential lenders.
We recommend that you hold off on making any big financial moves or life changes. Make sure you're in a pretty stable place both personally and financially. Do you anticipate needing to move a lot of money out of savings in the near future? Or, do you plan on switching jobs or anything similarly life changing? Pumping the brakes on major money moves is a good idea before you start looking for home, but it becomes crucial to the process once the documentation begins.
Lock in your rate
Once you've started you've started the documentation for your loan, it's to your advantage to lock in your rate. If mortgage rates should go up while your loan is in process, even a few tenths of a percentage point, this can make a significant difference in what you'll pay over the life of your loan.
So, you'll want to lock in your rate. There are many different types of rate-lock products available, so once again talk to your loan officer on the best way to maintain your rate throughout the entirety of the process.
Pre-approval status is really a tool for you to know what kind of budget you have to work with, give your buying power some extra strength, and help you make an informed decision about what kind of loan solution will work best for you.
So, contact us today, and let's get started!
If you haven't owned a home before, attempting to buy one can seem intimidating. It doesn't have to be, however. We're here to help. So, if you think this is the year you want to check "become a homeowner" off of your resolution list, here are some things you can do to get ready:
Think about your down payment
You may have heard that you need 20% of a home's price to make a down payment. While that amount to put down can certainly reduce your overall payments, as you'll be borrowing only 80% of the home's price, 20% isn't always required.There are several loan types, particularly FHA loans, which allow you to put down far less than 20%. As with all the points on this list, we recommend that you speak to one of our loan officers to see what loan type fits your unique situation and needs. In general, though, it's a good idea to beef up your savings as you start this process.
Get your FICO® Score in shape
Do you know what your score is? If not, you should find out, and there are plenty of resources online to help you. The minimum amount you need will depend on the type of loan you want to pursue, but you'll likely want to get your score up to around 740, if possible. Of course, the higher, the better.There are several factors that can affect your score, including (but certainly not limited to) your credit payment history, the total amount of debt you have, and the length of your credit history. If you can get your credit score in good shape, you'll look more attractive to potential lenders.
Don't make any major money moves
The first two entries on our list have largely dealt with what you can do to get ready to start your journey to homeownership. The next two deal with smart things to do once the process has begun. This spot on our list is something that applies to both before and after you've gotten started.We recommend that you hold off on making any big financial moves or life changes. Make sure you're in a pretty stable place both personally and financially. Do you anticipate needing to move a lot of money out of savings in the near future? Or, do you plan on switching jobs or anything similarly life changing? Pumping the brakes on major money moves is a good idea before you start looking for home, but it becomes crucial to the process once the documentation begins.
Lock in your rate
Once you've started you've started the documentation for your loan, it's to your advantage to lock in your rate. If mortgage rates should go up while your loan is in process, even a few tenths of a percentage point, this can make a significant difference in what you'll pay over the life of your loan.
So, you'll want to lock in your rate. There are many different types of rate-lock products available, so once again talk to your loan officer on the best way to maintain your rate throughout the entirety of the process.
Get pre-approved
Last but certainly not least, one of the best things you can do as you approach the subject of homeownership is to get pre-approved. This will give you an idea of just how much house you can afford. After all, you don't want to get your heart set on a particular house, start to imagine yourself living in it, and then find that it's out of your price range.Pre-approval status is really a tool for you to know what kind of budget you have to work with, give your buying power some extra strength, and help you make an informed decision about what kind of loan solution will work best for you.
Conclusions
If becoming a homeowner is something you want to explore in the new year, talk to one of our expert loan officers. They can help assess where you are now, and what you need to do to get where you want to go. Our mission is to help people like you see their dreams of homeownership come to life, and we're good at what we do.So, contact us today, and let's get started!