buy-a-homeCredit is Crucial!

When you start thinking of buying a home one of the first things you should do is check your credit score.  Contact a loan officer at Riverbank Finance to get a free credit report (or get an instant credit report online now).  If you find that you don’t have good credit, you may not get the best interest rate available – let alone get a loan at all.

Either way, good or bad credit, focus on paying your debt down.  Pay on your credit cards and make sure you are paying all of your bills on time.  You do not want to be turned down when applying for a mortgage, so focus a lot of your energy on raising your credit score.  If you have been turned down in the past due to poor credit score raising it can enable you to be approved in the future!

What is a good credit score, you ask?

720 and above is considered a good credit score, 750-850 is considered excellent!  However, if you do not have a good credit score you might still be eligible for a mortgage.  We have home loan options down to a 560 credit score for FHA loans and have lower score requirements than many banks and mortgage lenders. Check with a loan officer at Riverbank Finance to see if you are eligible for a bad credit mortgage.

Related: FHA loans with a 580 credit score

Save when you can!

Future home buyers should make sure their bank accounts can afford to put a down payment on a house and  have enough additional money to pay the extra fees involved in the home buying process.  Check to see how much of a down payment will be for your dream house and save accordingly.    

Budget, budget, budget!

Oh, did I mention to budget?

Buying a home can be very stressful.  Paying for it can be even more stressful – especially if your ways of living aren’t supported by your budget.  So be proactive about it!  Budget now so you won’t stress in the future.  When you budget ALWAYS consider the future, not just the present; what payment can you afford? What all will you have to pay for?

You know what assuming does . . . so don’t do it!

Do not look at your monthly mortgage amount and assume that you can afford your home.  A lot of other expenses should be considered when budgeting: utilities, amenities, taxes, day-to-day living expenses, etc.  This is a long term investment.  Therefore, your budget should be long term as well.

Remember, being a homeowner should be a rewarding and happy experience, so try not to set a budget that will make you stressed to the max.  Give yourself room to breathe – room to live.

Let the real fun begin!

It’s hard to budget when you aren’t exactly sure how much your future home will cost you.  So, look around for potential homes!  Narrow it down!  What city do you want to live in?  Neighborhood?  Street?  House?  The more specific you are the easier it will be to budget.

Use your resources.

Now, your budget will have to consider a variety of things: the type of loan, the loan amount, the interest rates, the length of time, etc.  These things cannot be known until you are approved by your lender for a mortgage on a specific home.  Talk to your loan officer about these things once you have found a house, they are there to help!  They can find the best loan and interest rates available to fit your situation.

Good luck!

Remember, Riverbank Finance is only a phone call or click away.  So don’t hesitate! Call us today with your questions or concerns.  We are always happy to help 🙂

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