You’re tired of renting and have started toying around with the idea of buying a home. A quick Google search can quickly become overwhelming with advice and things to do. Here are some of the most important things to do when preparing to shop around for home mortgages.
1. Get Your Credit in Order
Good credit is an important part of applying for a home mortgage with any lender. Most lenders consider creditworthiness in order to determine eligibility and interest rates. The better your credit, the better repayment terms you’ll get.
2. Research Down Payment Options
Not all lenders or home loan options require the same down payment. While some traditional home loans require 20% down, there are home loan options available that only require 5% down to purchase a home. Understanding your home loan down payment options can help you determine how much money you’ll need to have saved. Of course, the more money you put down the better, but don’t let the fear of not having 20% stop you from homeownership.
3. Start Saving Money
Outside of your down payment, there are other fees that are associated with buying a home. Closing costs and home inspections can cost a pretty penny depending on where you are purchasing a home. Although some realtors can negotiate closing costs, you may be responsible for them. Be sure to have money saved for these kinds of expenses in addition to your down payment.
4. Be Mindful of Spending Habits
Some mortgage loan underwriters may have to go over your bank statements in extreme detail to better understand your complete financial situation. Be mindful of things like frivolous spending and too much financial assistance from friends and family, this can cause you to lose the home of your dreams!
Deciding to buy a home is a great decision for you and your family, it’s important to be as ready as possible to make the home buying experience as stress-less as possible. For information on home loans, or home loan qualifications visit us online at caminofcu.org or contact us at (800) 835-3400 and speak with a Member Advisor.