Written By Craig Wells - Loan Officer Breton
Many of us dream of the opportunity to buy a home, only to find ourselves overwhelmed when we’re finally ready to do so. Figuring out who to talk to and what you need to get underway can become overwhelming, quickly. Here are some simple tips to feel more confident as you begin your home buying journey.
Check Your Credit Score
Before you dive in, take a second review your Credit Score. You can do so by pulling a free credit from one of the three major credit bureaus. Whether your score is in great shape or needs improvement - having a handle on your report can help identify opportunities to maximize your score and improve your odds of pre-approval. If you need help, get connected with one of our loan officers. We’ll be happy to offer guidance and provide helpful tips to ensure you put your best foot forward.
Limit Your Spending
An important aspect of your mortgage application will be your debt-to-income ratio (DTI). Overspending happens, but don’t let small purchases risk your large home investment. Any new debt you create may negatively affect your DTI and could keep you from qualifying for a mortgage. Paying off or even paying down your current credit can help you qualify for a larger mortgage.
Identify How Much You Can Spend on a Home
Take the time to budget and figure out a monthly mortgage payment that works within the confines of your budget. In determining your monthly payment, be sure to consider the costs of property taxes and homeowner’s insurance. If you need help calculating costs, be sure to use our Mortgage calculators to help determine what your monthly payments could look like based on these factors.
Begin Your Own Mortgage Education
The more information you have about the process, the more confident you’ll be as you begin the mortgage process. These homebuying resources offer helpful information about the homebuying and mortgage processes.
Get Connected With a Lender Early
Even if you’re a couple of years away from being ready to buy a home, it can still be beneficial to sit down with a lender and talk things out. The conversation can help you develop a plan for the next 1 to 2 years, in preparation for homeownership. A good lender will work with to understand your needs, even when you’re not ready to purchase a home.