Getting approved for your home mortgage can be a daunting task if you don’t know what to expect. Learning about the process from a mortgage broker is a bad idea that could ultimately cost you your home.
There are three major components to preparing for homeownership:
- Saving: It can be difficult to begin saving money on a regular basis, particularly if you still owe on other debt. Saving is a necessary habit to prepare for the closing costs associated with a home purchase as well as for the continued upkeep of your home.
- Down Payment Assistance: Most mortgages require some money down. A conventional mortgage with the better rates requires a 20% down payment, but it also allows you to avoid private mortgage insurance (PMI). Some government programs provide down payment assistance for homeownership.
- Credit: Lenders will require that you have proven that you will likely repay the loan. A credit score of 630 or higher is generally needed for better rates. A credit review now could help you plan for homeownership.
If you would like to Get the Facts on what it takes to become a homeowner, you may contact us to find the next homeownership seminar that you may attend. You may also speak with a certified housing counselor.
