After you've been renting for a while, you might be getting ready to buy your first home. This is a big step and we have a few tips to help make the process easier. David Sant with Cyprus Credit Union tells us how you can get yourself ready.
Don't Apply For New Lines of Credit
When you decide you`re ready to buy a home, you need to make sure you aren't applying for credit cards or other loans. Not only could this indicate to potential lenders that you rely too much on credit, it also lowers you credit score. For a conventional loan, you`ll need a credit score of no lower than 620.
Research Your Options
The most common type of mortgage is a fixed rate loan at a rate of 10, 15, 20 or 30 years. However, there may be another option that fits your situation better. For example, moving to an area such as Saratoga Springs may qualify you for a USDA loan. If you need assistance navigating the mortgage products or have any questions, any home loan adviser can help.
Think In the Long Term
Even if you just consider this your 'starter home,' you need to have some foresight. Something may happen that requires you to stay in the house longer than you planned. Ask yourself a few questions.
• What is the resale value going to be?
• Will it be easy to sell?
• Are you going to have children?
• Does the house require any work?
Always come up with a contingency plan in case something changes down the line.
Save For a Down Payment
Traditionally, most mortgage loans require a 20% down payment. Having a down payment saved can help you stand out during the bidding process. By saving for, and eventually having, a down payment you can avoid some unnecessary costs such as private mortgage insurance.
Find out more by visiting: cypruscu.com.