If you’re a first-time homebuyer or someone close to you is, you’re in luck! Village Properties is kicking off its First-Time Home Buyer series to help people make the best decision when purchasing their first home.
Home Buying 101 - Let’s Talk Money
We know exactly what lenders are looking for and how to make yourself an ideal candidate so you can get a quality lender at a rate you’ll be thrilled about. Here are our top tips on how to be the best first-time buyer possible:
1. Know Your Credit
Prior to beginning your home search, find out the exact condition of your credit. You can check your score and credit details free using reputable sites like CreditKarma.com. This is a necessary first step before submitting a mortgage application. Dispute any errors that could be dragging down your credit score and look for opportunities to improve your credit, such as making a dent in any outstanding debts.
Do you have credit blemishes? Hire a pro to help repair them. A good, inexpensive place to start is Lexington Law. They will try to get mistakes or old dings off your credit for good. Nothing’s guaranteed, but it’s a good place to start.
2. Best Mortgage Application Practices
There are a few key factors you must consider before you apply for a mortgage, such as:
Determining exactly how much you can afford (based on things like income and debt ratio).
Know and understand your price range and avoid going to the highest end of your budget. Rely on this home affordability calculator to determine what you can and should spend.
Once you apply, be wary of things (like major purchases) that could directly affect your credit score. Avoid opening any new accounts, such as credit or auto loans, until after your home loan closes.
3. Watch Your Credit and Pause Any New Activity
When applying for a mortgage loan, your credit will be one of the key factors in whether you’re approved, and it will help determine your interest rate and possibly the loan terms. Use tools to pause/freeze your credit and keep a close eye on it throughout the entire home buying process. Remember, your dream of becoming a homeowner is near, you can do it!
If you have more questions, our agents are a valuable source of information. Find one at https://www.villagesite.com/ by clicking on “Office and Agents.”