Throughout April, we will be sharing some First-Time Homebuyer Tips during our Mortgage Tip Thursday. This week, our blog focuses on some more helpful tips to get you started on your first-time homebuying journey!
Home prices are still high and the market competitive however homeownership is a great way to accumulate wealth in the long term. Are you ready to buy your first home?
Are you considering homeownership? We recommend homebuyers start preparing six months in advance of house hunting – or as soon as possible. Why? First-time homebuyers often need time to reduce debt obligations, save up for a down payment, or improve their credit to meet program requirements. If homeownership is something you are considering, use our branch locator to contact a licensed Envoy Mortgage Loan Originator near you. Envoy loan originators will help you get on the right path to homeownership.
Make sure the information on your credit report is accurate and up-to-date. Get a free copy of your credit report every year from each of the three major credit reporting bureaus at www.annualcreditreport.com. If you have already applied for a mortgage loan, your loan originator will have already pulled your credit report and should be able to advise you on aspects of your credit report that may require attention.
This sounds like a no-brainer but it is important. Lenders want to see good payment history. Generally, if you pay your bills within 30 days of the due date your late payment will not be reported to the credit bureaus. However, you will accumulate unnecessary and costly late fees.
The amount of debt you have weighs heavily on your overall credit score. If you can pay down balances – your credit may improve. Generally, it’s reasonable to keep your credit card balances at or below 30% of your credit limit. It also makes sense to pay down higher-interest card balances before lower interest card balances.
Each loan program that Envoy Mortgage offers has different requirements. Contact a licensed loan officer to see which programs you are eligible for. Envoy loan programs include FHA, VA, USDA, Fixed Rate, Jumbo, and much more. Some loan programs offer no down payment options.