If you have plans to buy your first home in the next six to 12 months, we’re here to help. We’ve compiled this handy blog post to educate you on everything you need to know and simplify the process. Here are four points to keep in mind as you begin your journey to homeownership.
1. Realize You Can Buy a Home with a Lower Down Payment
There’s a good chance you can buy a home with much less money than you think you need. Many lenders offer 5% down programs with reasonable private mortgage insurance that usually ranges from $100 to $150 per month. Fortunately, home ownership is far less expensive than it used to be.
2. Know Where You Stand Credit Wise
Visit websites like Credit Karma and Credit Sesame to keep an eye on your credit score. Of course, the higher your credit score, the more likely you’ll secure a lower interest rate and affordable monthly payment. To increase your credit, pay your bills on time, pay down debt, and don’t apply for too many credit accounts at once.
The good news is that even if your credit score is on the low side, you may be eligible for an FHA or VA loan, which is a great option for first-time homebuyers. Don’t worry about your score once you get to around 760. At this point, a higher credit score won’t help you much more. Focus your time and energy on other activities that prepare you for homeownership.
3. Consider Your Budget
Take a look at your monthly after-tax income as well as fixed and variable expenses. Also, review previous credit card bills and bank statements. All of this information can help you determine what kind of down payment and monthly mortgage payments you may be able to afford.
A lender will ask you about these things before they go through the pre-approval process.
4. Understand Your Options
Reach out to a lender to find out what type of mortgage programs are right for your situation. A professional can review your finances and unique goals, explain all the options at your disposal, and help you choose the ideal home loan for your budget and lifestyle.
Contact SBC Lending Today
If you’re ready to pursue your dream of homeownership, we’re here to help. Our friendly, experienced team has access to hundreds of loan products and looks forward to helping you find the right one for your particular needs and preferences. Call us at
(866) 504-6444 or contact us online today for more information.
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