You’ve made the decision to buy a home. This process can be both nerve-wracking and exciting, especially if it’s your first time. You might not know what to expect and feeling uncertain. Most of your concerns can be put to rest once you do a little homework. Follow these 4 tips to ease your worries and help the process run smoothly.
Check Your Credit Score
One of the most crucial factors to qualifying for a mortgage is your credit score. Evaluate your credit report and look for collection accounts, unpaid accounts, and mistakes. Knowing your credit score will help you prepare for purchasing your new home because you know where you’ll stand.
Analyze Your Liabilities and Assets
Keeping track of your monthly cash flow is important. Take time to understand your spending habits and what your budget looks like. Knowing where your money goes will help you save better for your first home. Knowing your liabilities helps in being prepared. For example, self-employed individuals may need to show a longer history of earnings to qualify for a loan.
Organize Your Documents
Documenting your taxes and income is required for homebuyers. Here are some documents you’ll likely need to show mortgage lenders:
- W-2s from the last 2 years
- Tax returns
- Bank statements from the last 2 months
Mortgage lenders look for nonsufficient funds or if there are any odd trends of money going in or out. Having these documents ready before you start actively searching for a home will save time.
Know Your Down Payment
Make sure you’re ready to make a down payment. If you’re not able to do this on your own, you may qualify for assistance loans. This can help take the edge off of the down payment and secure your new home.
As you can tell, it only takes a few steps to ease some of your anxieties about buying a home. Preparedness is key and City Creek Mortgage can help. Follow the above steps to save time and be ready to qualify for a new home.