Make 2019 the Year You Buy A Home

Are you eager to build your net worth and stop making those rent payments each month? Whether you are a millennial or someone who has been renting for decades, now could be the right time for you to become a homeowner.  Now there’s nothing wrong with renting and it can be right for some people. However, if you are looking to buy a home, here are some steps you can take to make that dream come true in 2019.

Get out of debt

This mean no student loans, no credit card debt, nothing. Not there yet? Make 2019 the year you eliminate your debt. Lenders will look at your debt-to-income ratio, and if you already have debt, it will limit the amount of money you can borrow.

Know your credit score

Most credit card companies will show your credit score on your statement. (You do not need to pay to see your credit score.) Your credit score will directly impact your mortgage interest rate. The difference of just 100 points, could save you (or cost you) thousands. A credit score over 740 shows lenders that you are low-risk and they will be more likely to lend you money at a good rate. (Anything above 760 is excellent, 680 is average, and 640 and below could keep you from getting a conventional loan.)

Save for a down payment

Ideally, you will want to have 20% available to put as a down payment; however, we know that’s not always possible. The minimum for an FHA loan is 3.5 percent of the purchase price. More than 5 percent will get you into a fixed-rate conventional loan (where you pay private mortgage insurance monthly).

If you’re feeling like you’re ready to start down the path of homeownership don’t hesitate to connect with us. We look forward to working with you and helping your dreams come true.