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5 Things to Know First Before Applying for a Home Loan

View of Wilmington North Carolina from across the river

Whether you are a first-time homebuyer or an experienced buyer, there are some important things to know first to ensure that your home buying process is smooth and simple. Here are five important tips to keep in mind on your homebuying journey!

Be Timely with Paying Bills

When applying for a home loan, it is important you have a good credit history which includes paying all your bills on time. Late payments can negatively impact your credit score, and that can play a part in whether you are approved for financing in addition to impacting the rate and term you may receive.

Avoid Opening New Credit Accounts or Closing Existing Ones

It is best to put off opening any new credit accounts or lines of credit until your loan is closed. Each loan is comprised of different terms and conditions and taking on more debt could impact the loan you receive or change the one already in process.

It is also important not to close any existing accounts even if they have a $0 balance. Each item on your credit report contributes to your credit history or the record of your responsible repayment of debts. The longer your credit history, especially with a good payment record, the better.

Hold Off on Making a Career Change

An abrupt job change can affect your loan approval. From your lender’s perspective, your employment history and income are paramount to your ability to make your payments. After all, you need to show that you have the stability and continuity of income to repay the loan. Even once your loan has been approved, be cautious about changing employment. Many lenders will do a final check to verify your employment and income has not changed since your final loan approval was issued.

Research What You Can Afford

Once you have committed to the decision of buying a home, your first step is to get pre-approved by a lender. Keep in mind that pre-approval is different than prequalification. Getting prequalified gives you an idea of how much you can afford, while pre-approval takes an in-depth look at your credit report and ability to purchase a home. This will save you time in the long run because you will only look at houses within your price range.

Find the Right Lender for You

Just as it is important to research all your loan options, it’s also important to find the right mortgage company for you. Put in the extra effort to locate an experienced lender who can offer you a range of solutions and guide you through your major life-changing purchase.

Thinking about buying a house? Call one of our experienced loan officers today!

4 Strategies for Buyers in a Hot Sellers’ Market

In a market with limited inventory and lots of willing and able buyers, we find a hot sellers’ market. Once you’ve found “the one” and you’re ready to get serious, it’s time to get your game face on and beat out the competition. Here are some strategic tips that home buyers need to know when buying in a sellers’ market!

3 Ways to Use Your Stimulus Check to Own a Home

If you are one of the 90 million people who are eligible for the third round of stimulus checks, you might be wondering what are the best ways to save, invest or spend these funds based on your financial goals. If owning a home is a personal ambition you want to achieve, here are three tips on how your stimulus check can help!

Get the Down-Low on Down Payments!

While a 20 percent down payment is considered ideal, it’s not actually as common as you might think, nor is it a necessity to buying a home.

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Equal Housing Lender LogoALCOVA Mortgage LLC | NMLS#40508 | (www.nmlsconsumeraccess.org)
Licensed in AL, CO, DC, FL, GA (License #42101), KY, MD, NC, OH, PA, SC, TN, VA, WV | 308 Market St SE, Roanoke, VA 24011

Equal Housing Lender LogoALCOVA Mortgage LLC | NMLS#40508 | (www.nmlsconsumeraccess.org)
Licensed in AL, CO, DC, FL, GA (License #42101), KY, MD, NC, OH, PA, SC, TN, VA, WV | 308 Market St SE, Roanoke, VA 24011