Three Tips for Financing Your Home
Financing a new home can feel overwhelming but it does not have to! Check out this simple checklist to help you get and stay on track to make your dream home a reality.
- Check your credit score. Your credit score is a numeric representation of your credit history, which takes into account payment history and debt. Lenders will use your credit score to determine loan eligibility and whether you can pre-qualify for a loan. To purchase a house, you should aim to rework any debts and improve credit history to bring your score to at least 600. Wells Fargo has great tips of using trusty worthy sources to get a free copy of your credit report.
- Make affordability a main factor. Figure out how much you can afford based on a few factors like gross monthly income, debt ratio, credit scores and down-payment amount. Use an online calculator to easily determine this number.
- Pre-quality for a mortgage. Provide tax documents, income and savings to a mortgage banker. Your lender will review the information provided and let you know the price range of homes and loans available to you. This step smooths the home-buying process and makes the purchasing process more efficient. Bank Rate offers a simple calculator to give you some insight of what to expect when you go to a lender.