Throughout April, we’ve been highlighting helpful resources in honor of National Financial Literacy Month. This week we’re talking first-time homebuyer tips.
Mortgage rates remain low, home prices are rising, and homeownership is a great way to accumulate wealth in the long term. Are you ready to buy your first home?
Get the Ball Rolling – Now
Are you considering homeownership? We recommend homebuyers start preparing six months in advance of house hunting – or as soon as possible. Why? First-time homebuyers often need time to reduce debt obligations, save up for a down payment, or improve their credit to meet program requirements. If homeownership is something you are considering, use our branch locator to contact a licensed Inlanta Mortgage near you. Inlanta loan officers will help you get on the right path to homeownership.
Improving Your Credit Score – Homebuyer Tips
Why does your credit score matter? Your credit score will help determine the interest rate you get and the loan programs you are eligible for. Higher credit scores enable borrowers to pay lower interest rates. If you haven’t already considered improving your credit score – it’s never to late to start. Here are a few credit tips for potential homebuyers:
1. Check Your Credit.
Make sure the information on your credit report is accurate and up-to-date. Get a free copy of your credit report every year from each of the three major credit reporting bureaus at www.annualcreditreport.com. If you have already applied for a mortgage loan, your loan officer will have already pulled your credit report and should be able to advise you on aspects of your credit report that may require attention.
2. Pay Bills on Time
This sounds like a no-brainer but it is important. Lenders want to see a good payment history. Generally, if you pay your bills within 30 days of the due date your late payment will not be reported to the credit bureaus. However, you will accumulate unnecessary and costly late fees.
3. Pay Down Balances
The amounts of debt you have weighs heavily on your overall credit score. If you can pay down balances – your credit will improve. Generally, it’s reasonable to keep your credit card balances at or below 30% of your credit limit. It also makes sense to pay down higher interest card balance before lower interest card balances.
Each loan program that Inlanta Mortgage offers has different requirements. Contact a licensed loan officer to see which programs you are eligible for. Inlanta loan programs include FHA, VA, USDA, 203K, Jumbo, and conventional mortgages. Some loan programs offer no down payment options.
Inlanta Mortgage is a multi-state mortgage banker based out of Pewaukee, Wisconsin. NMLS# 1016.