Preparing financially for a home purchase. This article is intended solely for the trends of our market as it stands currently and provide some general insight for potential 1st time home buyers or folks new to the home buying process, and those who are actively and motivated to repair some minor credit issues.
First off you NEED to know your credit standings, this lets you know what your buying power is, this enables you to clear any disputes you may have on your credit. This process could take some time, but there are some tips that can help you boost your score in 90,60, or even just 30 days. Open lines of credit can help and hurt you the most, keep them current and really work hard on paying down principal balances. I personally use Credit Karma, it’s free and updates with real time credit reporting. Try to get any credit cards to less than one third of the available credit line. Consolidate credit to one card that offers an attractive APR and low transfer fees, and many offer 12-18 month interest free. That’s Free Money for you to apply to get the balances lower. DO NOT put more on credit cards now that you’ve freed up some space. You must apply some self discipline and live off CASH until your score is worthy of a bank to offer your a loan on a mortgage.
Save for a down payment. There are loans that can get you into a home for as little as 3.5-5% down. On a $175,000 home that’s only $6-8 thousand! There are some that offer 1% down but generally are for VERY well qualified buyers that may not have established much credit and have a good Debt-to-income ratio. (What percent of your income is paying what you currently owe to your monthly expenses)? KNOW this number, your will hear it MANY times and you will know what payment you will be comfortable to afford and provide basic needs to your family.
Talk to a bank, odds are if you aren’t sure about where you stand credit wise having them “pull” your credit probably isn’t going to hurt as much as not knowing or pretending it will fix itself. Sorry that stings a little, but as a consumer you need to arm yourself with knowledge. Go to more than one lender, open an account at a major bank or local credit union, they will be more apt to lend a member money once they are able to see your financial picture.
There are some programs available to 1st time homebuyers, Veterans, USDA properties, and various needs.
Please Call me or my wife Leah, it is our goal for you to realize home ownership and pay your mortgage not SOMEONE ELSE'S. We would love the opportunity to help you now or in the future. We can suggest resources for you to begin this journey, it should be exciting and not a scary one. Make the first step and do something to change your circumstance. You’ll be surprised at the number of people that will work hard to assist you along the way. My favorite moment in my job is handing key to your home to you.
Call us at 843-8000-BUY