Buying a home can be the biggest investment of your life, and it’s essential to secure the best financing options to make it happen. While daunting, it doesn’t have to be. With a few tips, you can get full financing on a first-time loan and turn your dream into a reality.
Improve Your Credit Score
Your credit score is an essential factor lenders consider when determining your eligibility for a mortgage. The higher it is, the likelier they will lend you a lower interest rate and better terms.
Start by getting your credit report from Equifax, Experian, and TransUnion. Review your report for any errors or discrepancies and dispute them. Late payments, defaults, and high credit utilization ratios can all negatively impact your credit score. Pay bills on time and reduce your debt to improve your credit score.
Additionally, avoid opening new credit accounts or making large purchases that can increase your debt while obtaining a mortgage. These activities can lower your credit score and negatively impact your chances of securing full financing on a 30-year loan.
Save for a Down Payment
This is the money you pay upfront when purchasing a home. The larger it is, the more likely you will secure full financing on a 30-year loan. Traditionally, the standard down payment is 20 percent of the home’s purchase price, but some lenders may require less, and some programs may assist first-time loaners.
Acquiring funds for a down payment can be a challenge, but there are several strategies you can use to help you achieve this goal. Start by creating a budget and reducing your expenses. Consider downsizing your current living situation or finding ways to increase your income. You can also look for programs or grants that offer down payment assistance.
Shop Around for the Best Rates
Comparing rates from different lenders can land you the best deal when shopping for a mortgage. The interest rate is the amount you will pay in addition to the loan’s principal amount. The lower the interest rate, the less needed to be paid in interest over the life of the loan.
Start by researching different lenders and their mortgage programs. Ask for multiple quotes from at least three lenders, then compare rates, terms, and fees. Remember to factor in additional costs, such as closing costs and points.
Also, consider the type of mortgage that best suits your needs. A fixed-rate mortgage offers a stable rate over the life of the loan, while an adjustable-rate mortgage offers a lower initial rate that can change over time.
Additionally, consider working with a mortgage broker who can help you find the best deal and guide you through obtaining a mortgage.
We’ll Make Your First Time Easy and Memorable
Securing full financing on a 30-year loan can be complex, but with these tips, you can increase your chances of success. When buying a home, improving your credit score, saving for a down payment, and shopping around for the best rates are essential steps. Be bold and seek professional guidance; you’ll be one step closer to key to achieving your dream of homeownership.
Looking to assemble your American Dream Team? Look no further than Andy May, a licensed Real Estate Associate and Mortgage Broker who can assist you in choosing the best Realtor and securing the ideal mortgage program for your location. Headquartered at 8522 Six Forks Road, Suite 201, Raleigh, NC 27615, the Andy May Group, LLC team can be reached at 919-771-3379 for inquiries on first-time loans.
For more information please contact Andy May at 919 771 3379
ADRMortgage.com. Andy May #103418. Andy May Group, LLC #88010. 919 771 3379. Equal Housing Opportunity. 8522 Six Forks Road, Suite 201, Raleigh NC 27615. Of course, further disclosures may be found at the website at the beginning of this paragraph. Realty Hub disclosures may be found at https://joinrealtyhub.com/agents/