The time has finally come for you to branch out and become a first-time homebuyer. You can already envision the home that you want; the white picket fence, the open floor plan, the future garden in the backyard…all of this sounds wonderful, but where do you even begin?
Before you start the home buying process, it’s important to learn as much as you can about the financial side of things. There are many financial factors that you need to solidify at the beginning of the home buying process; with the most important being your mortgage. If you’re wondering what you need to qualify for a mortgage, look no further! BSR Realty Group has compiled a list of everything you need:
1. Create a budget
Before you start anything, figure out your budget. Outline exactly what you can afford and don’t skim on adding in bills, purchases, and entertainment. You want a clear-cut guideline as to what wiggle room you have when it comes to your revenue. You can view online budget calculators and mortgage generators to get an idea of what you can afford. It’s important to know the good, the bad, and the ugly when it comes to your earnings; don’t cheat and be honest!
2. Focus on your credit score
Your credit score matters! Review your credit score before applying for a mortgage by using agencies such as Experian or FICO. Avoid making larger purchases during this time and avoid closing/opening additional credit cards. Any hard inquiry on your credit report could affect your overall score when lenders are evaluating your application. Pay off your current debt, stick to your budget, and watch your credit score grow.
3. Don’t Quit!
We know your boss is driving you crazy. We know you want to explore other opportunities. But avoid taking a leap…at least for right now! Lenders want to see you in a stable, working environment for a decent length of time. So, stay employed, and plan that grand exit after you purchase your new home.
4. Save for that Deposit
The more you put down, the better the mortgage opportunity. Lenders will offer better rates for large deposits, so start saving now. The more you put down, the less you’ll have to pay monthly as well – more money down = a better deal for your wallet!
5. Don’t be afraid to ask for help
If this is your first time qualifying for a mortgage, we know it can be stressful. Lean on your friends, family, and even a trusted source for help during this time. This is a big moment for you, so make sure you dot your t’s and cross your i’s. BSR Realty Group is here to help you with anything you may need!
Are you ready to start the home buying process? Contact BSR Realty Group today to get started today!
