5 First-time Homebuyer Tips
#1 Gather Your Documents Early
This saves you time and helps your loan move forward without delays. Start by gathering a valid ID, recent pay stubs, and your W-2s to verify your income. You’ll also want to have your bank statements to show you’re ready for closing. If you’re self-employed, prepare your most recent tax returns as well. Having these documents organized upfront helps streamline answers and accelerates your path to homeownership.
#1 Gather Your Documents Early
This saves you time and helps your loan move forward without delays. Start by gathering a valid ID, recent pay stubs, and your W-2s to verify your income. You’ll also want to have your bank statements to show you’re ready for closing. If you’re self-employed, prepare your most recent tax returns as well. Having these documents organized upfront helps streamline answers and accelerates your path to homeownership.
#2 Check Your Credit
Your credit score plays a large part in which loan options are available and most importantly largely dictates your interest rate. A 620 or higher credit score is recommended. A credit score for a home purchase is called a FICO score, which may be different from other credit scores. Click below for a free, no obligation FICO score in minutes.
#3 Get Pre-Approved
Pre-approval shows sellers how much your bank is willing to lend you, which can make your offer stronger and more competitive. It also gives you a clear price range, so you can shop with confidence and move quickly when you find the right home. Talk to a loan officer to begin the pre-qualification process.
#3 Get Pre-Approved
Pre-approval shows sellers how much your bank is willing to lend you, which can make your offer stronger and more competitive. It also gives you a clear price range, so you can shop with confidence and move quickly when you find the right home. Talk to a loan officer to begin the pre-qualification process.
#4 Audit Your Savings
Take time to review your savings. Make sure you have enough set aside for your down payment, plus closing costs. Many first-time homebuyers qualify for little or no money down programs like state housing, FHA, and USDA loans. This government assistance not only lowers the down payment requirement, it also keeps the interest rate down so the monthly payment is manageable.
#5 Calculate Your Total Monthly Budget
This gives you a more accurate picture of what you can comfortably afford each month. Don’t just look at the mortgage—factor in property taxes, homeowners’ insurance, and HOA fees too.
#5 Calculate Your Total Monthly Budget
This gives you a more accurate picture of what you can comfortably afford each month. Don’t just look at the mortgage—factor in property taxes, homeowners’ insurance, and HOA fees too.
*This is not a commitment to lend. All loans subject to credit approval. Terms and conditions may apply.
