Tired of throwing away money on rent? Would you like to own your own home?
Use this short list to get ready:
TO DO LIST FOR HOMEBUYERS
- Review your free annual credit report for errors that negatively impact your score.
- Keep all credit accounts open — do not close any accounts.
- Pay down all credit card balances to below 50%. (Below 30% is even better.)
A low balance-to-limit ratio on credit cards = a higher credit score
- If you have cash at home, deposit it into a bank immediately. Cash is not allowed when getting a mortgage loan. The money must be seasoned and sourced in a bank.
- Save for a down payment. You will need 3% to 3.5% of the purchase price, depending on loan type. Exceptions: The zero down VA loan for U.S. Veterans and the zero down USDA loan for properties in rural and semi-rural areas/non-metropolitan areas.
- If you do not have sufficient funds for a down payment, explore the possibility of gift money from family.
- Do not, under any circumstances, purchase a vehicle!
Buy the house first; get the car afterward.
- Do not quit your job; but if you are offered a better job or promotion opportunity, that is totally acceptable, because you are not cutting off your income source.
- Seek out a mortgage broker for your financing. A mortgage broker can shop 30 wholesale lenders with only one credit pull.
A mortgage broker has more loan options to choose from.
- Get your pre-approval letter that shows what price you can purchase.
Get pre-approved first; then go house shopping.
Home ownership represents security and stability. With some work and planning, the American Dream can be yours!
ApplyHere for a home loan in California or Washington state.
Carolyn Warren, Sr. Loan Officer/Mortgage Broker NMLS #1284134