How First-Time Buyers Should Shop for a Home Loan
Buying a house can be thrilling — and nerve-wracking — for a first-time buyer. The learning curve is steep, but doing a little financial homework will help you navigate the process.
Take these five steps to make your homebuying experience go smoothly.
1. Check your credit
The homebuyer’s credit score is one of the most important factors in qualifying for a loan.
“In addition, the standards are higher in terms of what score you need and how it affects the cost of the loan,” says Mike Winesburg, a former mortgage planner and wealth adviser in Wheeling, West Virginia.
Scrutinize your credit report for mistakes, unpaid accounts or collection accounts. Get help from NYC Elite Homes today to help you get a pre approval and get you a home you deserve!!1
Just because you pay your bills on time every month doesn’t mean you have excellent credit. The amount of credit you’re using compared with your available credit limit, known as your credit utilization ratio, can hurt or help your overall credit score.
The lower the utilization rate, the higher your score. Ideally, first-time homebuyers should have a lot of credit available, with less than a third of it used.
But if you owe more compared with your income than lenders like to see, your credit may need work. Start tidying up your credit at least six months before you start shopping for a house.
2. Evaluate assets and liabilities
So you don’t owe too much money and your payments are up to date. But how do you spend your money? Do you have a lot left over every month, or are you on a shoestring budget?
A first-time homebuyer should have a solid idea of what is owed and what is coming in.
Get help from NYC Elite Homes today to help you get a pre approval and get you a home you deserve!!
Contact: 917-539-3131
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