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Recent Posts10 Reasons a NEW Home is a Smart Choice
8 Home Loan Tips
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8 Home Loan TipsPosted: April, 14, 2023 | Categories: Blog | Tips & Trends
Hey there, friend! So, you're thinking about buying a house? That's awesome! How I wish there was a "one-size" way to get preapproved for your home loan! There's really not... BUT, I'd still like to share 8 ways that may help you bridge that gap between your dream and reality of getting into a new Smart Dwellings home!
WORK ON THAT CREDIT SCORE
First, let's talk about your credit score. It's like your GPA in college but for finances. The higher the score, the better the loan terms you can get. So, make sure you pay down debt, make payments on time, and fix any errors on your credit report. A trusted lender can help you pull a detailed report and know exactly what to work on.
Second, saving for a down payment is key. Think of it like a deposit for a rental, but bigger. Most lenders require a down payment to secure a loan, and it can range from 3% to 20% of the home's purchase price. So, start saving now!
Third, keep an eye on your debt-to-income ratio. Lenders will evaluate this to make sure you can afford the loan payments, so it's important to keep your debt levels low and avoid taking on new debt before applying for a loan.
Fourth, gather your financial documents. Lenders will need documents like tax returns, pay stubs, bank statements, and investment statements, so make sure you have them organized and ready to go.
Fifth, try to hold off on making large purchases before applying for a loan. It can impact your credit score and debt-to-income ratio, which can affect your loan approval.
STEADY SHE GOES
Sixth, it's important to have a stable employment history. Lenders like to see that you have a steady source of income, so try to avoid job changes or gaps in employment before applying for a loan.
CONSIDER YOUR OPTIONS
Seventh, research loan programs. There are different loan programs available, such as FHA loans or VA loans, which may have specific requirements and benefits. Do your research and find the best fit for you.
DO THE MATH (WITH HELP!)
Lastly, don't be afraid to speak with a lender early on in the process. They can help you understand the loan application process, requirements, and eligibility, as well as any potential roadblocks to securing a loan. Be aware that a lender will typically run your credit score to provide the most relevant information. This is an important part of qualifying for a loan, so don't worry.
Give us a call at 307-364-3082 and we help you get started, recommend a lender, and more!
Hope that helps, and congratulations on embarking on your new home journey!
Author: Beth Lemon