Ask O: What Should I Do to Prepare to Buy My First Home?

Ask O: What Should I Do to Prepare to Buy My First Home?

Dear Olivia,

I’ve been a renter for almost 10 years, and I’m finally ready to start looking for a place to buy. I’m wondering, what should I do to get ready?

Sincerely,

Excited to Buy

Buying your first home is certainly exciting! Congratulations on getting to the point that you feel ready to move forward with a home purchase.

The process of buying a home can be a long one, but it will be much longer if you don’t prepare yourself accordingly. On the other hand, if you have all your ducks in a row, you could find yourself in your new home a little faster!

Here’s just a few things you can do to make sure you’re on the right track.

Check Your Credit Report

Any lender you work with will check your credit, so it makes sense to give it a thorough look before you meet with lenders to discuss home loan possibilities.

By checking your credit report, you can accomplish a couple of things. First, you can see if there are any errors on your report and work to get those corrected so they don’t negatively impact your ability to qualify for a loan.

Second, checking your credit report will give you an idea of what interest rate you might qualify for. The better your credit, the better the rate lenders will give you. If your credit score is a bit low, take some time to bring it up.

If you’re not sure how to check your credit report, head over to AnnualCreditReport.com to get a free credit report.

Shop Around for a Lender or Loan Program

Photo by Christin Hume on Unsplash

When you’re looking for a lender, don’t just automatically go with the bank where your checking account is.

Each lender might offer different rates and terms, so it’s important to do your research and find the lender that offers you the best deal. It could mean the difference of thousands and thousands of dollars over the life of the loan!

It’s also important to check into various home loan programs that could help you save even more money. As a first-time homebuyer, there are plenty of programs that offer assistance, including Wyoming Community Development Authority’s First-Time Homebuyer program.

Additionally, you might qualify for other loan programs from the VA, FHA, or USDA. Be sure to check into the requirements for those programs to see what they might offer you.

Get Pre-Approved

One of the most common mistakes homebuyers make is not getting pre-approved for a mortgage.

A pre-approval letter from your lender could shorten the time it takes to buy a home. It shows that you’re already approved for a certain amount, which shows sellers that you’re not only capable of paying for the home, but that you’ve already done some of the legwork to make a purchase.

When you find the home for you, you want to be able to move quickly so another buyer doesn’t swoop in and get it first. A pre-approval letter allows you to streamline the process a bit and potentially be the first one to make a move!

These are just a few things you can do to better prepare yourself to buy a home. As always, if you have more questions, don’t hesitate to reach out to me at 307-856-3999! If you’re ready to apply for a mortgage loan, you can do that at WindRiverRealty.com/get-qualified.