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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 Things You Should Do Before House Hunting

Once you decide to buy a home, the first thing you might want to do is to begin looking at houses online and setting up viewings. While looking at potential houses on the market is a crucial part of the process, jumping straight in could land you into trouble! Here are four things you need to check off your to-do list before you ever set foot in a home.

Do You Need Private Mortgage Insurance?

Not everyone can afford the standard 20% down payment when buying a home which means they need private mortgage insurance or PMI. So what exactly is private mortgage insurance, and how does it affect your home loan?

6 Smart Strategies to Build Home Equity

Simply defined, home equity is the percentage of your home’s value that you own, and it is the key to building wealth through homeownership. It can be your greatest financial asset, your largest component of personal wealth, and your protection against life’s unexpected expenses. Here are six ways on how to successfully build your home equity!

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

 

 

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