Luckily, buying your first home and getting a mortgage doesn’t have to be a stressful experience. You can make the process a lot easier by doing some ground work. Preparing is half the battle, and we’ll show you how to do just that. The joy of owning a new home at Spring Mountain Ranch in Riverside can be yours sooner than you think.
Pay your bills on time
One of the first things lenders look at when deciding if they will approve you for a home loan is your payment history. Did you know that even one payment over 30 days late can lower your credit score by over 100 points? So designing your budget to ensure you pay your bills on time for two years straight can go far towards raising your credit score.
Check your credit report
You need to be informed before talking to a lender, and checking your credit report is the way to do that. Take a close look at your report and make sure nothing is on there that shouldn’t be. If there is, file disputes to get those items removed. You’re entitled to one free credit report per year by going to this website: https://www.annualcreditreport.com/requestReport/landingPage.action This report won’t give you your credit score, so use one of the many free services out there, such as Credit Karma, to find out your numbers.
Save, save, save
You’ll need money for a down payment and closing costs, and the more you put down the lower your monthly payment will be. Got great credit? You might only need 3%. Not-so-great credit? Count on saving at least 20% for a down payment. Your lender can help you determine how much you’ll need to put down. Don’t forget there’s help out there if you’re struggling with this. Consider an FHA loan, or if you’ve served our country in the Armed Forces, a Veterans Affairs Loans might be available to you. Check out FHA loans here: https://www.hud.gov/buying/loans or Veterans Affairs loans here: https://www.veteransunited.com/va-loans/
Before you start shopping for a new home, know what you can afford. Then see your lender about getting pre-approved for a loan. That way, when you find your dream home nothing will be holding you back from bidding on it.
Raise your credit score
This is easier than you think. Apply for a big installment loan, say for a car, and pay on time every month. Don’t need a new car? Just apply for a credit card and pay off the balance every month. This can go very far, very quickly, towards raising your credit score. In the meantime, don’t make any major financial changes like new jobs or big purchases, as this will make lenders nervous.
Don’t forget the furniture!
Once you buy your new home, you’re going to need extra money to furnish it, decorate it with artwork, landscape, and do all those pet projects you’ve wanted to do since you first starting thinking about becoming a homeowner.
Now that you’re ready to buy, find your dream home
You’ve done all the financial stuff, so on to the best part: finding your dream home. Start with the community. Are you looking for a family neighborhood, peace and quiet, beautiful surroundings, or all of the above? If you chose “all of the above” then you should check out Spring Mountain Ranch in Riverside. Your dream home, and your family’s dream home, awaits you here.