So you're getting ready to buy a new home. Before you start looking at potential houses and filling out mortgage paperwork, there's a few things you need to do as preparation. Check out our list of how you can get yourself ready for the home buying process.
DON'T APPLY FOR NEW LINES OF CREDIT
When you decide you’re ready to buy a home, you need to make sure you aren’t applying for credit cards or other loans. Not only could this indicate to potential lenders that you rely too much on credit, it also lowers you credit score. For a conventional loan, you’ll need a credit score of no lower than 620.
RESEARCH YOUR OPTIONS
The most common type of mortgage is a fixed rate loan at a rate of 10, 15, 20, or 30 years. However, there may be another option that fits your situation better. For example, moving to an area such as Saratoga Springs may qualify you for a USDA loan. If you need assistance navigating the mortgage products or have any questions, our home loan advisors can help. To set up a free appointment, contact us at (801) 260-7600 ext. 5340 or email mortgages@cypruscu.com.
THINK IN THE LONG TERM
Even if you just consider this your “starter home,” you need to have some foresight. Something may happen that requires you to stay in the house longer than you planned. What’s the resale value going to be? Will it be easy to sell? Are you going to have children? Does the house require any work? Always come up with a contingency plan in case something changes down the line.
SAVE FOR A DOWN PAYMENT
Traditionally, most mortgage loans required a 20% down payment. Having a down payment saved can help you stand out during the bidding process. There are a few options when it comes to saving up. Check out some of the savings options that Cyprus Credit Union has to offer.
