National Homeownership Month is the perfect time to get prepared.
Buying your first home is exciting, but it can also feel overwhelming if you’re not sure where to start. The good news? A little preparation goes a long way. Whether you’re hoping to buy soon or just starting to plan, these steps can help set you up for success.
1. Check and strengthen your credit score.
Your credit score plays a big role in qualifying for a mortgage and determining your interest rate. Start by reviewing your credit report for accuracy and working to improve your score. Pay bills on time, reduce credit card balances, and avoid opening new credit lines unless necessary.
2. Start saving - for more than just the down payment.
Saving for a down payment is important, but don’t forget about other costs: closing costs, home inspections, and moving expenses. Even a small emergency fund can help you feel more confident as you take this big step.
3. Limit other debt where possible.
Your debt-to-income ratio (DTI) is a key factor lenders use to evaluate your ability to repay a mortgage. If you’re able, avoid taking on new car loans or credit card debt while preparing to buy a home. Reducing existing debt can also improve your DTI and boost your borrowing power.
4. Talk to a local community bank.
Before browsing listings, talk to a lender you trust, ideally a local community bank. They’ll walk you through your options, explain what you can afford, and help you get pre-approved when you’re ready. Local lenders understand the market and are often more flexible and relationship-focused than big-box banks.
5. Make a plan and take it step by step.
Buying a home isn’t something that happens overnight and that’s okay. The earlier you start preparing, the more confident and informed you’ll be when the time comes.
You don’t have to figure it all out alone.
Our team is here to answer your questions, connect you with helpful resources, and guide you through the process when you’re ready. Let’s make your first home purchase a smart, smooth experience.
Reach out to the Queensborough Mortgage team today!