Homeownership can be challenging with limited housing availability, increased home prices and expenses on the rise. When working towards purchasing a new home, it is important to present yourself as a responsible borrower. This takes planning, organization and knowledge. Since June is the official month of National Homeownership, use these steps to help you purchase your first home.
These are five tips offered by the American Bankers Association that will assist people to qualify for a home loan.
1. Gain Speed With Lenders
Be prepared for the house bidding process. Get pre-approved for a loan so you can quickly and effectively bid on your dream home.
2. Fix Financial Flaws
Clean up your credit and pay down debt. If you address problems early, you are more likely to qualify for a better interest rate.
3. Build Your Savings
Down payments for first time homebuyers generally range between 6 – 7% on average, according to the National Association of Realtors. However, offering a larger down payment helps you build equity faster, reduce monthly payments and eliminate the need for private mortgage insurance.
4. Understand Your Local Market
Once you know what you’re looking for, research what similar homes have sold for in the past six months.
5. Set a Realistic Budget and Stick To It
Consider what you absolutely need in a future home and where you can make concessions.
Today’s market is challenging, but the American dream is still achievable. Helpful tips like these can be a roadmap to successful homeownership.
Whether you are in the middle of the process or just starting your journey, together we will create a plan to make your dreams of homeownership possible.