It’s National Homeownership Month, a time to celebrate the vital role homeownership plays in building strong communities and empowering families throughout our nation. Homeownership is not only a key component in the “American dream,” it provides stability, financial security, and is the primary way to build generational wealth. It’s also the most expensive purchase most of us make, so whether you’re buying your first home or getting ready to move into your dream home, we’re here to help you navigate the mortgage process.
To prepare for a home purchase, we recommend the following:
- Talk to a mortage lender. Prequalifying for a mortgage should be the first thing on your homebuying to-do list. Our local mortgage loan officers can help you understand your buying budget and get you ready to make an offer. We can also talk you through any Federal programs like FHA and VA loans you might qualify for.
- Be ready to move quickly. If you plan to buy in a community with a low inventory of homes for sale, you need to be prepared with a quick offer on a home you love. It’s common for home buyers to miss out on the first home they wish to purchase because they can’t act quickly enough (which is why #1 is so important!).
- Make a competitive offer. If you’re in a low-inventory market, your offer is unlikely to be the only one on the table. Do what you can to make your offer appealing to the seller.
- Develop a wish list. Write down what you’re looking for—from acreage to school district to number of bedrooms and bathrooms—to help target your home search. It’s also helpful to divide your list into wants and needs: what would be nice to have, and what are unable to give up?
If you’re just starting your home buying journey, it’s a great time to set up a separate savings account for your new home and start monitoring your spending to determine where you could cut back and save more. If needed, you should also start working to raise your credit score to get the most competitive mortgage rates.
No matter your plans, if you’re considering buying a home, we’re here to help.
Sources: Hud.gov, aba.com and nar.realtor.