Buying your first home can be an exciting time. You’ve finally decided that you’re ready to go from renting to buying, but what types of things should you prepare for before you take that big step? Here are a few things to keep on your first-time homebuyer checklist.
Getting pre-approved means that you’re getting a commitment from a lender for a certain home loan amount. Not only will this set your home-buying budget, but it also shows realtors that you’re serious when it comes time to put an offer in. In a competitive market, it’s more common for sellers to only accept offers from people who are pre-approved.
- Make Sure You Pass the Home Appraisal
Before they issue a loan, a lender will require a home appraisal. This is because they’ll use the home as collateral, and they want to make sure it’s worth what you’re paying for it. If you’re home aces the approval, you’re good to go, if it doesn’t pass and it’s worth less than what you’re paying for it, you’ll have a little bit of a problem.
- Keep a Stable Credit Score
When it comes to the minimum credit score, it will vary by lender, loan program, and the credit history of the applicant. It’s very important to keep your credit score constant throughout the entire application process. This shows lenders that you can keep it stable, and that no unexpected surprises will pop-up when it comes to the final credit check.
- Use a Mortgage Calculator
Before you buy your home, make sure you calculate out how much of a mortgage payment you’ll be able to make each month. You should also take into account enough income to cover property taxes and homeowner’s insurance. It’s important to budget enough for all of these things so you don’t jeopardize your new home.
If you’re a first-time homebuyer and need help, but aren’t sure where to turn, Pacor Mortgage is a great place to start. Our team of experienced professionals will be able to help you through the entire home-buying process, from the first stages to the last. If you need help calculating your mortgage, you can visit the tools page on our website, or give us a call today at 773-883-7744.