When you’re preparing to purchase your first home, you’re likely feeling excited and ready to get started as soon as possible. However, it’s important to take your time and make sure everything is in order before reaching out to Nations lending services. Your net branch lender of choice likely has a wide array of loan choices on the table for first-time and experienced buyers, but you’ll benefit from following the guidelines below.
Check Your Credit Score
Before you reach out to Nations lending services, you’ll need to make sure that your credit history is in good shape. A score in the 600s might be workable in some situations, but it’s not ideal. When you’re hoping to land the best interest rate and loan terms, you should aim to have a credit score that’s above 700. An admirable credit history just lets you have more bargaining power when it comes to figuring out the loan terms that you’ll have for 15 or more years. To begin researching your credit history, use a free website like Credit Karma. If your score needs some work, don’t worry! Just focus on paying off debt like credit cards, student loans, and car payments.
Determine Your Budget
When you’re thinking about becoming a homeowner, determining a budget before you contact a net branch lender is ideal. If you’ve never owned a home before, it can be difficult trying to figure out a realistic budget that you can afford. If you’re not sure how to discover how much you can afford to spend on a home, check out some of the free mortgage payment calculators online. Many of these are excellent options, and you can even find out your debt to income ratio for an idea of the income required for different home prices.
Research Loan Packages
If you’re a first-time homebuyer, it might be ideal to find a Federal Housing Administration, or FHA, loan. This type of loan usually has a lower interest rate and is perfect for new homeowners. On the other hand, if you’re thinking of moving to a rural location, a USDA loan could be the best choice. It’s becoming more difficult to find lenders who offer USDA loans, but it’s still possible to find this elusive loan in some areas of the country.
When you’re ready to ditch renting and purchase your first home, it’s easy to get excited and eager to move forward. Before you reach out to Nations lending services to talk about loan options, make sure that you’re ready. You’ll likely have a better home buying experience when your credit looks good and you have an idea of what you can spend.