At City Creek Mortgage, you’ll find a team of professionally trained staff ready to help you through your home buying process. We want this experience to be a stress-free and happy one. It may take some time to find the perfect options for you and your specific needs, but that’s what we are here for.
You can do a handful of things beforehand to make the process go a little more smoothly. We can help you navigate all the pieces you don’t understand or need a little extra help thinking through.
Review your credit score.
While your credit score isn’t the be-all and end-all of your home-buying experience, it is the place where most lenders start. So, if your credit isn’t in tip-top shape, you may have found a great place to start in the process.
Go ahead and get a copy of your credit score and your credit report. The first thing you’ll want to do is look for errors. If you spot any, it’s a pretty simple process to dispute the mistakes and have them removed. This simple step could save you money in the long run!
If you need to scrub up your credit, set a few important goals:
- Pay your bills on time. One way to do this without stressing yourself out is to set up autopay for your monthly bills. That way, you know exactly what day you’ll be paying which bill and can plan accordingly. If you have some accounts that don’t permit autopay – like medical bills – pay those as quickly as you can. Your consistency in monthly payments, over time, will increase your credit score.
- Pay down your debt. Most financial advisors will first tell you to focus on the credit card with the highest interest rate. That means you may make a minimum payment on other credit cards for a little while, but take that extra and apply it to the credit card with the highest interest rate. You can pay off that high-interest card first and then focus your attention on the next-highest card. It’s a step-by-step process, but it pays dividends in the end.
- Check your credit score frequently. Once you’ve taken steps to repair your credit, check your score regularly. That way, you can catch any errors that appear and see how your diligence is positively affecting your score.
Save some money.
It doesn’t sound like a glamorous tip, does it? But, it’s so true. We recommend you save for two reasons: closing costs and emergencies.
Along with a down payment, you’ll need to pay closing costs. Typically, we estimate closing costs are between 3%-4% of the purchase price of your home. Closing cost fees pay for essential pieces of your home buying process, including appraisals, inspections, copies of your credit report, attorney’s fees, and homeowners insurance.
Your lender will be able to give you a specific amount, so you’ll know exactly how much money you’ll need to have saved for closing day. You want to be sure you’ve got that money set aside.
As fantastic as homeownership is, it can also come with unexpected emergencies – plumbing, septic systems, air conditioning. Sometimes it may feel like everything goes wrong at once.
If you save money and set it aside for emergencies, you can stay debt-free. In the long term, being able to remain debt-free will be essential and will help your peace of mind.
It can be frustrating at first when you’re trying to furnish your home, for example. But it’s important to remember to stick to a budget. You may not be able to have the perfect dining room for Thanksgiving, but in the end, you’ll be comforted knowing you have the money in hand to pay for what you want.
We all want granite countertops and tile backsplashes. Everyone hopes for hardwood floors throughout their home. How lovely it would be if we all had inground pools and perfectly landscaped lawns. It would be super if we could all live like movie stars! The reality is, we can’t.
Use available tools to figure out how much house you can afford. Don’t invest in a house that stretches your monthly budget so badly it makes you anxious and miserable. There’s no house worth that! A good rule of thumb is to be sure your monthly housing costs (including HOA fees, taxes, insurance, etc.) are going to be no more than 25% of your monthly take-home pay.
It can be frustrating to wait. But, when it comes to buying a home, it’s way better to be prepared and well-researched before you purchase. If you work hard and follow the steps that will cause you the least amount of anxiety in homeownership, you’ll be so glad you waited.
Work with your team to outline a plan of success. In the end, your goal is homeownership, and our team wants to help you get there – as happily as possible!
City Creek Mortgage is a small, family-owned business unlike any other mortgage company in Utah. Our team understands what it’s like to hurry up and wait when owning a home. We have the tools you need to make your home purchase as stress-free as possible.
Contact us today to get started on your home-buying adventure. We want you to have the best possible home-buying experience. Working with us, you’ll quickly see why we are regarded as the most trusted, respected, and loved mortgage company in Utah.