Call: 804-784-4364
Current Mortgage Rates: Richmond, VA
4.750% (4.787% APR) 30yrs
4.125% (4.163% APR) 15yrs
as of 12/13/18
Read More

Building on Trust™

RatePro

4 New Year’s Resolutions For Homebuyers

NewYears

New Year’s resolutions are hard to keep—but if you are planning to buy a home in 2018 or later, that decision will benefit you for life. With a few smart choices, these resolutions can help you to save money, improve your credit score, and to find a mortgage and home that fits your lifestyle.

Look ahead at 2018 with these resolutions:

1. Start a savings fund

The first step in preparing to buy a home should be to start a savings fund. FHA Loans require a down payment of 3.5% of the home’s cost. Other mortgages typically see down payments of 20% of a home’s price, and it can take time and planning to accrue that amount of money.

If you are not able to provide a large down payment, learn more about FHA mortgage loan requirements.

If you have trouble saving, try using a financing app, look for places where you can cut spending, or speak with your bank about creating a savings plan. Any amount that you can set aside will be useful in buying a home.

2. Check your credit score

Be prepared to check your credit score before planning to shop for a mortgage. If you have established credit accounts and a good history of on-time payments, then your score may already be above 580, which is required for an FHA loan.

However, if you do not have good credit history, here are a few ways that you can plan to improve your score in just one year.

  • Lower your credit usage. You should use no more than ⅓ of your available credit each month.
  • Make on-time payments for your credit accounts. A single late payment can be one of the largest negative impacts on your credit score. If you have trouble remembering payment dates, use your accounts’ online interface or app to set up automatic payments on each due date.
  • Pay your full balance each month. Showing a consistent payment history and low credit usage will help improve your credit score.
  • Don’t over check. If you are applying for credit cards, mortgage loans, or other large credit accounts, a hard pull will be made on your accounts. This can negatively impact your score if too many occur within a year.
  • Similarly, a self check of your credit score will not impact it negatively. This is called a soft pull. Make sure that you use a reliable credit checking agency to view your score periodically. Many banks and financial institutions are now providing monthly credit reports as an included service with certain accounts.

With these credit tips, you can begin to see your score improve. If you make a habit of using these methods, you can expect to have a better credit score by the next new year.

3. Plan for pre-approval

When you are shopping for homes, pre-approval can help you to make a decision on a home when the time is right. Homes can sell faster than you expect, and getting a pre-approval can allow you to make an offer on a home when you are ready to act.

4. Choose a mortgage lender that understands your needs

When you are shopping for pre-approval, you can start to build a relationship with a mortgage lender that understands your interests, your home market, and what you expect in a loan.

If you are looking for a close, personal connection with a mortgage lender, try shopping locally. Local mortgage lenders are often easier to contact, can meet with you to explain costs and other variables, and are most familiar with your local market values.

Taking time to understand your finances and learn about your mortgage options can be helpful at any time of the year. If it is your goal to buy a home in 2018, RatePro Mortgage wishes to help with any information that you may need. Good luck!

Are you planning to refinance your home this year? View more information here!


Comments
(There are no comments yet)
Leave a Comment
Captcha

Mortgage Rate Meter


Testimonials
 
914817
' We found Rate Pro mortgage after working with several other mortgage companies all of whom failed to grasp our complicated financial situation and ... more '
5.0/5.0
by zac5
890518
' We just purchased our first home and went through RatePro Mortgage to do our lending. I have worked in both big and small retail banks so I have seen ... more '
5.0/5.0
by zuser20140424054854787
838849
' This was my 3rd home purchase and 3rd different mortgage company, and Rick and his staff at RatePro were by far the best. Rick was timely, honest, ... more '
5.0/5.0
by jweimer1968
RatePro