Achieve Your Goals
Prepare yourself for the journey to home ownership
Review your personal financial situation, and do some basic calculations to figure out if the time for you to buy a home is now. Whether it is your first home purchase or your fifth, understanding what you can afford will help you in your search for the “perfect” home. An affordability calculator like the one above, uses calculations based on the percentage of your income spent on monthly debt.
Your credit score can influence your ability to get a loan. As an industry standard, your FICO score impacts the type of loans you qualify for, interest rate, and how much you can borrow. The Fair Credit Reporting Act (FCRA) states that every US consumer is entitled to one free credit report from each of the three credit bureaus each year. Keep in mind that while you will receive a free credit report, it will not include your credit score. But since you are considering a home purchase, it would be wise to review the reports for accuracy.
There are a lot of documents needed in the home purchase procedure, and waiting until the last minute to organize your paperwork can create unnecessary delays in the application process. Sometimes there are multiple offers on a home, and the seller could select the person best prepared to close in a timely manner. Being organized could help make that you!
We have mentioned before, sometimes you compete for the home of your dreams. And being preapproved might be the only difference between you and your competition. The seller may be more comfortable knowing that you can afford the house.