4 Steps to Becoming a Homeowner
March 14, 2019
Deciding on whether or not you’re ready to become a homeowner? There are a few key things you will want to consider before entering the home buying market. Home buying can be a long and stressful process but also an exciting one! By doing these four things, you can make the process easier and increase your chances of finding the perfect home for you!
- Set your budget.Having a clear idea of what you can afford is necessary so you don’t find your dream home only to realize it is way out of your budget. Sit down and decide how much you can afford to spend on a mortgage each month while keeping in mind taxes and insurance will also effect the monthly payment.
- Save up for your down payment. When purchasing a home, lenders require you to put money down towards the home. The amount you have to put down will depend upon the type of mortgage you’re getting and can range anywhere from 3.5 to 20% of the price of the home. After you’ve set your home budget, you can decide how long it’ll take you to save up for a down payment on a home of that price. Come up with a savings plan and stick to it to help you get there!
- Raise your credit score as much as possible.The better your credit score the more options you will have when it comes to a mortgage loan along with a lower interest rate. To help your score, pay down credit card balances you may have, try not to open any new lines of credit and make sure you are making all of your payments on time. These things all have an impact on your credit score.
- Get pre-approved from a lender. When beginning to search for homes, getting pre-approved for a loan can give you a more exact idea of where you stand. A lender will look at your income and debt and give you a better idea of how much money you’ll be able to borrow.
The home buying process can take some time, but by taking these steps, you can make it more enjoyable. Greater Iowa would love to help you have the best experience on the search for your home! We offer a variety of lending options so you can find the one that’s best for you.
Make an appointment to meet with one of our loan officers today or start your application online! Happy home-buying!
- credit score
- financial planning
- home loan