Do your New Year’s resolutions include plans to buy a new home? If so, you might want to add these New Year’s resolutions to your list as you begin your new home search:
1. Obtain credit history and credit score. It’s no secret that mortgage lenders have become much more conservative with regards to funding. Lenders use your credit score to determine your loan’s interest rate and terms. It’s in your best interest to know that information ahead of time. You can obtain a free copy of your credit history from AnnualCreditReport.com and then pay for your credit score (about $9).
2. Demonstrate good credit behavior. Lenders regard borrowers with credit scores above 780 as their best customers. If your score is below that level, you should eliminate any errors and practice good credit behavior to improve your score. The best way to do that is to pay your bills on time and in full each month.
3. Determine how much home you can afford. Before you start looking for a new home, take a close look at your income, savings and obligations to see what you can afford. FBC Mortgage has a mortgage calculator you can use to determine your monthly payment. Remember to factor taxes and insurance into your total housing cost.
4. Obtain financing. You can save time and make your closing process go more smoothly if you get pre-approved for your loan ahead of time. Gather all of your documentation (W2, tax returns, account statements, etc.) before you talk with a lender so you’ll be able to obtain a mortgage loan that fits your budget.
5. Evaluate home builders. If you’re in the market for a brand new home, check out the reputation of the home builders in the area you want to live. Walk through some completed homes and ones under construction. Ask about materials used and any challenges in the area. Find out if the builder’s projects are completed on time, and talk with residents about their experience.
One of the top home builders is Maronda Homes. A leading force in home building since 1972, this visionary builder offers homes that respect both the environment and your budget. Contact us today to find out more about our affordable homes for sale in your area.