Home Purchase Preparation
Preparing to apply for a home loan can be a daunting task, but it doesn't have to be. Here are a few key steps you can take to prepare for getting a home loan:
Check your credit score: Your credit score is one of the most important factors that lenders consider when determining whether to approve your loan application. Before you apply, check your credit score and work on improving it if necessary. If you don’t know exactly what to do, Corbin Matise has a Home Purchase Preparation Program, also known as HPP, that has helped many people get into position to buy a home.
Review your credit report: Along with your credit score, lenders will also review your credit report to see your credit history. Review your credit report for any errors or discrepancies and dispute them with the credit bureau.
Save for a down payment: Most loans require a down payment, typically between 3-20% of the purchase price. Start saving as early as possible to make sure you have enough money for a down payment.
Review your budget: Homeownership comes with many ongoing expenses, such as property taxes and maintenance. Review your budget to make sure you can afford the additional expenses that come with owning a home.
Gather necessary documentation: Lenders will require documentation to verify your income, employment, and assets. Gather things like your pay stubs, bank statements, and tax returns in advance so you're ready to provide them when requested.
shop around for a lender: Different lenders offer different rates and terms, so it's important to shop around and compare offers from multiple lenders. Ask about fees, rates, and loan terms to ensure you're getting the best deal.
Get pre-approved: Getting pre-approved for a loan can be beneficial in a number of ways, such as helping you find a home in your price range, and make you a more competitive buyer in a bidding war.
Hire a real estate agent: A good agent will be able to help you find the right property at the right price, and can also help you navigate the loan process.
By following these steps, you'll be well on your way to getting the home loan you need to make your dream of homeownership a reality.