Know Your Budget Before You Start Shopping
Before you fall in love with a home, know what you can actually afford. Take a close look at your income, monthly expenses, and savings. A good rule of thumb is to keep your monthly housing costs at or below 28% of your gross monthly income. Use our affordability calculator to get a ballpark number and then connect with one of our loan officers for the real picture.
Understand Your Credit Score
Your credit score plays a big role in determining what loans you qualify for and what interest rate you will receive. The higher your score the better your options. If your score needs some work, do not panic. There are simple steps you can take to improve it over time and our team can point you in the right direction.
One of the smartest things you can do as a first time buyer is get pre-approved before you start shopping. Pre-approval tells you exactly how much you can borrow and shows sellers you are a serious buyer. It can also give you a significant advantage in a competitive market.
Learn the Difference Between Loan Types
As a first time buyer you have access to several loan programs designed specifically to make homeownership more accessible. FHA loans offer low down payment options and flexible credit requirements. VA loans are available to eligible veterans and service members with little to no down payment required. USDA loans are a great option for buyers in eligible suburban and rural areas. Conventional loans offer flexibility and competitive rates for buyers with stronger credit profiles. Our team will help you figure out which one is the right fit for you.
Save for Your Down Payment and Closing Costs
Your down payment is not the only upfront cost to plan for. Closing costs typically range from 2% to 5% of the loan amount and cover things like appraisal fees, title insurance, and lender fees. The more prepared you are financially going in the smoother the process will be.
Work With People Who Know the Process
From your loan officer to your real estate agent, the team you surround yourself with matters. At IH Mortgage our experienced professionals are here seven days a week to answer your questions, guide you through the process, and make sure nothing catches you off guard.
Do Not Make Any Big Financial Moves During the Process
Once you have been pre-approved it is important to keep your financial situation stable. Avoid making large purchases, opening new lines of credit, or changing jobs during the mortgage process. Any significant changes to your finances can impact your loan approval
Know What to Expect at Closing
Closing day is exciting but it can also feel like a lot. You will review and sign a stack of documents, pay your closing costs, and officially receive the keys to your new home. Our team will prepare you for exactly what to expect so you walk in feeling confident and ready.
You Are More Ready Than You Think
Homeownership is within reach for more people than you might expect. With the right loan, the right guidance, and a team that genuinely cares about your success, your first home is closer than you think. Reach out to IH Mortgage today and let us help you take that first step.
