- Know your Credit Score!
- Credit Scores dictate which program you qualify for
- High Credit, Lower Rate
- Low Credit, Higher Rate
- Higher Credit, Lower Mortgage Insurance
- Get a Home Inspection by a Third Party!
- By knowing issues with the home that you are interested early into the process you can save yourself time and money!
- Don’t apply for new lines of Credit when looking to Purchase a Home!
- Believe it or not buying that new car could hurt your ability to buy that new home! You see, one of the ways that a person qualifies for a home is by having a debt to income ratio that can fit a new home and still maintain a qualifying ratio. Just wait it’ll be worth it!
- What are you comfortable with in a Monthly Payment?
- Form a budget for yourself to decide how much of a monthly payment is realistic for you. Mortgage Companies are able to use gross income to qualify you for your home but you don’t take home gross pay!
- Be Financially ready for your Down Payment
- There are very few loan types that will allow you to do 100% Financing and even then, you have closing cost. Think, am I putting 3%, 5%, 10%, more? Plan your down payment! Getting with your Mortgage Company ahead of time can help you figure out what you need and develop a time frame for your purchase!
- Shop smart!
- There are a few things that you can do to have a great home with a low monthly payment!
- Choice the right home warranty company
- Shop for good but cheap Home Owners Insurance!
- Picking an established home can immediately save you money on property taxes!
- Choose the correct loan type. This has a direct correlation to your interest rate and monthly payment!
- How long will you be in this home?
The average first time buyer occupies in their first home between 5 and 7 years. By knowing how long you will be in your new home you can make the choice of which loan program to go with much easier!
