Buying a home is a big step in your life. When buying your first home, you are filled with excitement, optimism, and nerves. New home buyers may feel overwhelmed with the process of buying a home. However, we are here to help provide helpful tips for buying a home in the current market.
Do Some Research and Contact a Lender.
Research is crucial when venturing into your first home-buying experience. One of the easiest ways to open the conversation about purchasing a new home is by reaching out to a lender at Auburn Savings. They are the pros that can provide you with the ins and outs of the entire process of buying your first home. They can also connect you with a Real Estate agent, that will help you find your first home.
Alternative Home Options for You.
With the heightened demand for existing homes in 2024, alternative options may look appealing when you are starting to find your ground in real estate.
A construction loan is an alternative option that allows you to construct your dream first home. Construction loans can help borrowers with the cost of land, materials, and labor during the building process. An Auburn Savings lender is a great partner in working through the construction loan process, reach out today for pre-planning or financing needs.
Another appealing option for new home buyers is mobile homes. They have gained popularity in the recent years due to their affordability and flexibility.
There is no one size fits all when looking for your first home. Every situation is unique, which is why our Auburn Savings lenders are here to help! For more information on construction loans, click here or mobile homes, click here!
Set Your Budget.
To set your budget, work with an Auburn Savings mortgage lender. They will be looking at the following:
- Employment History
- Income
- Down Payment
- Debt to Income Ratio Near 43% (DTI)
- Credit Score
Your DTI is a common calculation used by lenders to compare your total debts to your total monthly income. Once the lender has worked with you to obtain the above information, they will help you set a budget to give to your real estate agent. Auburn Savings’ is also equipped with financial calculators to help you answer crucial questions such as “How much home can I afford?” and “How much mortgage might I qualify for?” .
Go at Your Own Pace.
If now isn’t the time for you to purchase a home, then no worries! In the meantime, you can talk to a lender at Auburn Savings to learn more about the process, obtain three tradelines on your credit report, and save towards your down payment.
Improving your credit score:
Your credit score is an important factor in deciding your loan approval. To maintain or build a strong credit score, make all your debt payments on time, keep your credit card utilization to half, and have a healthy account mix of different tradelines. Credit card utilization is the ratio between the available balance compared to the outstanding balance on the card.
Saving towards a down payment:
Saving towards your down payment is important. The goal is to have 20% down of the purchase price. When a buyer is not able to put 20% down, Private Mortgage Insurance (PMI) needs to be purchased. PMI is a type of mortgage insurance that protects the lender if the borrower stops making payments on their loan.
We Are Here to Help
Purchasing your first home should be an exciting and fun experience, and we are here to help. Come into a branch and speak with our lending team to find the best options that fit your unique situation. Click here to contact us today.