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5 Tips to Know Before Buying a House

View of Wilmington North Carolina from across the river

When you enter the homebuying market and make your offer on the house that fits you, crossing your fingers and wishing for a smooth mortgage process is something all buyers do. But did you know that you can control a lot of elements that ensure a smooth close on a house? Check out these 5 simple tips to follow before owning that home!

On Time…Every Time!

We all have bills to pay, and it’s vital that we pay them before they are due! You need a good credit history when you apply for a mortgage, and that means paying all your bills on time, every time. Overdue payments will hurt your credit score which impacts whether you’re approved for financing.

Steady Employment

A stable employment history is another significant item needed when applying for a mortgage. Lenders need to be able to see that you have the stability and continuity of income to repay the loan. Two years of consecutive employment is what lenders are looking for, and they verify this information through employment stubs or W-2 forms.

Don’t Open or Close Credit Accounts

If you’re looking for a new home, there’s a good chance you’re going to be looking to furnish and decorate it as well. While that big furniture sale next weekend might be tempting, it’s 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 one already in process. The same concept applies to existing credit accounts. While you should hold off on opening a new line of credit or account, you should also avoid closing any existing accounts. Each item on your credit report contributes to your credit history. The longer your credit history, especially with a good payment record, the better.

Learn About Your Loan Options

There are plenty of loan options available, and it’s not difficult to learn the basics about what’s out there and what fits your situation. VA, FHA, USDA, Jumbo, and Conventional are just a few to research along with fixed-rate and adjustable rate loan options. Not sure what is the best fit for you? Sit down with an expert Loan Officer and let them help you weigh your options.

Discover What is Affordable

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.

If you’re thinking about buying a house, contact one of our experienced loan officers today!

4 Signs It’s Time to Refinance Your Mortgage

With rates still near historic lows, now is a good time to talk to a mortgage professional to discuss your home ownership goals. In fact, refinancing is booming right now with requests for refinances making up 64 percent of total mortgage applications the first full week of July, according to the Mortgage Banker’s Association. Here are four signs it might be time for you to consider refinancing your mortgage!

Own Your Starter Home with These 3 Tips!

While your starter home may not be your forever home, finding and financing the right property is important. Here’s three things you should know as a first-time home buyer when it comes to finding the right property and financing your starter home!

5 Ways to Make Your Offer Stand Out

As home prices continue to rise and inventory levels stay low, our current seller’s market signals stronger competition with more buyers fighting for fewer homes. In this scenario, making a perfect offer is key to securing a house. So what factors make your offer stand out from the rest?

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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