Preparing for your Home Loan


As home prices and mortgage interest rates continue to increase some first time home buyers have delayed their decision to purchase a home.  However, waiting to buy can be an opportunity to prepare for a bigger or better home.  Here are some suggestions to improve your home buying opportunity.

1.      Keep your credit in good standing. You can save thousands of dollars by having a good credit score, which will help you save money in closing costs and loan fees. 

2.      Payoff, consolidate or paydown debt.  Consolidating and decreasing your debt improves your credit score, as debt directly impacts your ability to purchase a home.  Do not co-sign or take out new loans.

3.      Save for a down payment and closing costs.  A down payment can improve your interest rate and give you more loan options to choose from.

4.      Set a budget you can live on and begin doing it.  A budget will enable you to put into motion a real picture of the how much you earn and spend.

5.      Stay employed for 2 years in the same line of work full time.  This is the standard guideline, although there are exceptions. 

Borrowing is not “one size fits all”, however, the above suggestions can help home buyers position themselves for success.

If you have any questions regarding home ownership please feel free to contact me. 


Ed Smith

NMLS 327781