With the housing market improving, we know you'll be tempted to start looking for a place to call home. Before you start shopping around and looking for a place, let Angel work with you and help you reach those goals. Consider your financial situation before you start shopping around.
Here are four things every first-time homebuyer should consider:
1. Have a Good Credit Score
The first step is knowing what your credit score is across all three bureaus. When you trust Angel to help you with your financial situation the first thing we do is partner you with a qualified Credit Counselor who will help you discover your credit scores and review your report to see if there are any negatives. Lending standards have tightened since the housing market collapse and our counselors are trained to know what those standard are. They'll not only help you navigate the standards and requirements lenders have, but will also get you on a plan to getting your credit healthy. The minimum score lenders will consider is a 640, a feat we help clients reach every day.
2. Hard Inquires Could Lower Your Score
When a lender pulls your credit repsort they're going to notice your hard inquiries on your history. Mortgage lenders will examine your history to determine whether your score is up to par after you apply for pre-approval for a home loan. Hard inquiries will drop your score and may last up to 2 years, potentially stopping you from getting approved for a loan. When you enroll in our program, we ask for a commitment from you, not to attempt to get credit cards or anything else that may cause a hard inquiry on your record. There are certain exceptions to this rule and your counselor will help you navigate those rules so we can get you ready to get pre-approved.
3. Higher Credit Score Means Lower Interest
Many people come to us and say, "but I know a guy who was approved with a 580 credit score." We're not doubting you, but what your friend may not have realized is that a higher credit score, means lower interest. The difference between being approved at 580 and say, 640 may mean the difference between 14% interest and 3% and that's a big deal -especially with a 30 year mortgage.
4. Be Prepared to Juggle Mortgage Payments with Other Bills
First-time homebuyers should always plan out their budgets with their mortgage in mind. When you enroll in a credit repair program with Angel, your counselor will go over your budget with you to ensure you'll be able to plan properly for you future.
With these tips in mind, our clients are more prepared to apply and be approved for a home of their dreams. Let Angel help you get ready to purchase your next home.
