If you’re thinking of taking the leap to home ownership within the next six months, there are several things to do to make the process go as smoothly and enjoyably as possible. One of the most common areas that cause snags in the home buying process is financing. The days of anyone and everyone qualifying for a loan are gone, and it’s up to you as a borrower to become a strong candidate for a mortgage. Here are some of our tips to get your financial house in order in order to make that dream home happen in the not-too-distant future.
- Check your credit report and credit score. These are two of the main factors analyzed when qualifying for a mortgage. If you have any erroneous information on your report, you’ll want to immediately begin the long and sometimes difficult problem of correcting the problem. If you see any potential weak areas, such as high credit utilization ratios, you have time to work on them. On the other hand, if your credit profile is looking good, you want to be financially conservative and responsible to keep those high marks.
- Look at potential special financing programs. Are you in the medical field or current/former military? Even teachers sometimes qualify for special long programs that offer more advantageous rates and down payment requirements, which can directly affect how long you will need to save up money before buying.
- Wait on any other big purchases. Think of it from the bank’s perspective: you want to be the most attractive, financially sound borrower possible. Instead of buying that boat you’ve always wanted and potentially increasing the amount of debt you owe, put that money into paying down current debt or into your savings account.
- Don’t change jobs. Lenders love to see stable employment, so it’s in your best interest to stay at your current job until after closing day. Not to mention this will mean less paperwork required by the bank!
- Find a good Realtor. At this point you can being talking with Realtors who can guide you in the right direction. Whether its recommending areas of town to being researching or excellent lenders to reach out to, a good Realtor has a lot to offer in the planning stages of buying a home. Paramount Brokers is a full-service agency and would love to help you in the entire purchase process.
With a little preparation, you can take the steps necessary to make your future home purchase a pleasure instead of a pain!