New year, New Home! If you’re thinking about buying a home in 2019, get prepared with some New Year’s Resolutions to help prepare yourself to buy a home in the coming year. There are some simple steps that you can take NOW to improve your chances of purchasing your dream home in 2019.
Check Your Credit
The better your credit history, the more likely you’ll receive a better interest rate on a mortgage loan. It’s a wise idea to check your credit report since lenders will use your scores to determine if and what type of loan you will qualify for. You can request a free credit report from the three major reporting companies – Equifax, Experian, and TransUnion – once per year. Most lenders require a FICO score of 620 and above to approve you for a conventional loan but can work with a score of 580 and higher for an FHA loan.
Start Saving for Your Down Payment
Most home purchases will require some type of down payment. The amount you set aside will be determined by how much you qualify for and what type of mortgage you take out. Most home purchases range from 3% to 20% percent down. You may also qualify for down payment assistance programs and grants. There are also programs like USDA and VA loans that offer 100% financing, depending on your qualifications.
Get Pre-Approved for a Mortgage
In today’s housing market, it’s important to be pre-approved for a mortgage even before you find your dream home. Not only does it help you determine how much you can borrow but it shows a seller that you are a serious home buyer. There is a difference between a pre-approval and pre-qualification, which is an estimate of how much you can afford to spend on a home. A pre-approval is more detailed and more valuable beacuse it means the lender has checked your credit and verified your documentation to approve you for a specific loan amount.
If you think you’re ready to buy a home, but aren’t sure where to start, contact the experts at TCP Real Estate today! We can help you from start to finish and answer any questions you may have about the home buying process.