Buying your first home can feel overwhelming. Granite Bank is here to take the stress out of the process. We have helped thousands of first-timers with their mortgages. Here are a few tips to help you get ready to own your dream home.
- Check out first-time home buyer programs. The US Department of Agriculture guarantees mortgages to home buyers in some rural areas. Fannie Mae and Freddie Mac fund the HomeReady® and Home Possible® mortgage programs. Fannie Mae’s HomePath and Freddie Mac’s HomeSteps have programs for buying foreclosed homes that favor first-time homebuyers. Also check out FHA and VA loans and see if you qualify.
- Manage your credit score. Don’t finance anything new close to your home purchase. Pay down credit to boost your score. Check your score at AnnualCreditReport.com and see where you can make improvements.
- Boost your savings. Cut expenses by creating a budget. A down payment is typically 3%-20% of the purchase price depending on the loan.
- How much can you afford? Don’t forget to add taxes, insurance, utility payments and maintenance costs. Try to keep your total house expenses less than one-third of your income. Your loan officer will also help you understand your maximum mortgage. Try to be a little bit less. And make sure you explore different types of mortgages to find the loan that fits your short-term and long-term financial goals.
- Get your paperwork together. Here’s what you will need: all bank account statements, 30 days of pay stubs, two years of W-2s and of tax returns, 12 months of rent payments, documentation of any outstanding loans such as school and vehicles.
- Get pre-approved. Knowing you already qualify for a loan in your target financial goal makes looking for the right home fun and easy. You know the price range and know that you can make an offer on the home you find that meets all your expectations.
