Before you apply for a mortgage or even hire a real estate agent, you will be thinking about owning your own home. We suggest you take 1 year to go over your home purchase. Check your credit score, lenders use credit scores to help them determine the likelihood you will repay the loan. It is one of the most important factors when calculating your interest rate. We suggest you monitor your credit reports 12 months will allow enough time to improve your score if needed.
You also need to start think about your home budget. Knowing this will help narrow down your home search. We have provided a free Mortgage Calculator to help you determine what you can expect to pay, with principle, interest, taxes, home insurance, PMI, & HOA fees.
Get a Down payment plan together. The largest upfront cost is your down payment and closing costs. Make a Plan ahead of time to save for this. With being a first time buyer there are several down payment assistance programs available. If you are interested in these programs please contact us at 719-297-3700
10-12 Months Before: Start Saving for Home Repairs.
Part of owning a home is doing necessary repairs and maintenance to the home. Get in the habit now of saving money every month for unexpected home repairs, maintenance, and other general home cost. This can include replacing appliances like water heaters, refrigerators, furnace, air conditioning units, Ect.
5-7 Months Before: Mortgage Options
You don't need to be an expert at all the types of mortgages and repayments plans. However we suggest you have some basic knowledge of how each mortgage loan type works. One of our Mortgage Consultants can discuss each specific program based on your current situation. This also gives you an opportunity to learn what documents you will need to close on your loan and start preparing those documents.