Everyone wants to be a homeowner—but getting there can be a bit complicated without the proper planning. When financing your home, it’s important to remember what you can afford and what you can do to make a positive impression with lenders.
Before you embark on your financing journey, take a look at your credit report. If you’re ready to buy a home and take out a mortgage, you’ve probably been obsessing over it for quite a while—but be careful not to make any big purchases before your mortgage finalizes. Lenders may be turned off by big changes to your credit score, which can further complicate the home-buying process.
On a similar note, make sure you’re securely employed during the process. Having steady employment (at one job or at multiple jobs in the same industry) shows credibility and is important to lenders when considering you for a mortgage.
And of course—be realistic when shopping around. Your “dream” home won’t be so perfect if you can just barely scrape by with the monthly payments. The future is not certain. Shop for a home and mortgage based on your budget now, not the one you hope to have later on.
Don’t put all your eggs in one basket when looking for a loan. Ask around, investigate yourself, and get the facts you need to make an informed decision on your lender. Different lenders have different criteria, and you may have more luck with one over the other.
Finally, when you’re settled into a mortgage payment, consider making multiple payments at once—if you can. This isn’t viable for everyone, but if you have the option to do so, it can keep you on track and help you pay off your home sooner.