The summer home buying season is in full swing. If you’re thinking about buying a house this season, now is a great time to start looking. Summer is typically the busiest real estate transactions seasons, with many sellers listing their homes now to make sure their homes sell before start of school year.
Especially if you’re a first-time homebuyer and you want to start looking, it’s important to be prepared financially and approach home buying strategically. We have some tips for how you should approach your home purchase on the financial side of things.
Preparation: Credit Score Review
Work on your credit score and continue saving up a down payment. Doing these two things will set you up for success when you’re actually ready to start looking for your first home!
During Home Buying
First, begin gathering the data you’ll need to figure out how much home you can afford. You’ll need to know your annual income before taxes, how much you have saved up for a down payment, how much you owe in monthly debt payments (car payments, student loan payments, etc.), and your credit score. This is all essential data that’ll be used to calculate how big of a mortgage payment you can afford on a monthly basis.
Second, you’ll need to qualify for a mortgage. This is an extremely important step that you need to spend some time on! You see, choosing your lender could end up saving you thousands of dollars, depending on how big or small your interest rate is. To do this effectively, use STEM Lending’s mortgage comparison shopping platform to compare lenders and interest rates.The importance of securing the right mortgage is huge. You should never proceed with just one lender, no matter who recommended them to you. Always compare multiple lenders to save on origination fees and services you can shop for. Click To Tweet
Using our online mortgage comparison shopping tool is ideal, because you’ll get the insights of licensed mortgage professionals whose fiduciary responsibility is to act in your best interest, not push a specific bank’s specific mortgage product. You’ll actually be obtaining the best mortgage product for your unique situation. Many home buyers are unaware that mortgage terms may vary substantially across lenders. Some mortgage lenders are able to provide limited time discounts in regions where they intend to expand their presence. The importance of securing the right mortgage is huge. You should never proceed with just one lender, no matter who recommended them to you. Always compare multiple lenders to save on origination fees and for services you can shop for. Insist on receiving a Loan Estimate.
Third, reach out to and begin forming a relationship with a mortgage broker. You should be comfortable working with your broker, and feel confident that the relationship is a good one. Begin the process of sending in the information the broker needs to get your mortgage pre-approved.
Fourth, start shopping for a home! After you’ve compared mortgage rates and you’ve chosen a broker, you’re now in the clear to shop for your new home. Shopping before you’re approved for a mortgage is not recommended, as you really don’t want to fall in love with a house before you’re qualified to actually buy it. Work with a real estate agent to find a home that fits into your style and budget. Do not exceed the budget you’ve gotten from the mortgage broker! You can’t take out a mortgage for more than you’re approved for.
Fifth, ensure constant communication with your broker on your mortgage progress. Getting appraisal completed and loan approval contingencies resolved are often time sensitive steps. A regular communication with your broker will ensure that all steps are completed on time.
That’s it! You’re well on your way to a home purchase that works for you and your family, both stylistically and financially.
At STEM Lending, we believe home buying should not be an overwhelming, stressful experience: you enter your information just once, then receive multiple mortgage offers at the click of a button. Comparing and shopping for home loans has never been easier. Weigh your options side-by-side and get help from one of our personal mortgage experts when you need it. Our team is committed to helping you shop for, choose, and close your mortgage with confidence and clarity.
If you have any additional questions, please give us a call at STEM Lending (833-600-0490), or email us at firstname.lastname@example.org. We’ll give you all the information you need to be an informed and successful home buyer this season.
Get started today: apply.stemlending.com/register