July 27, 2020
Financial Tips for Buying a New Home
Buying a new home is no-doubt exciting, but it can also be -well- a lot. There are many ways to navigate the home purchasing process, but the best place to start is with a lender. The financial side of home buying seems daunting, but with the right lender to guide you through the process, it can be a breeze. Since Hunter Quinn Homes has partnered with some of the best lenders in the area, the answers to frequently asked questions are easy to come by in this first installment of Learn HQ: Mortgage 101.
Take a look at what our partners at Ameris Bank had to say regarding FAQ's about financing a home.
What are some financial challenges typically found among people who are looking for a home?
Securing funds for the down payment is one of the most common challenges homebuyers face. Whether you are saving a little each month, borrowing from a retirement plan, or receiving a “gift” from a family member for your down payment, it’s important to consult with your mortgage banker to determine just how much you will need and how those funds need to be documented during the loan process.
What financial tips would you give someone interested in purchasing a home?
One of the most important things you can do when deciding to purchase a home is to manage and protect your credit. Homebuyers should continue to make all monthly payments on time. Missed or late payments on your credit report will lower your credit score and may make you ineligible for a loan for up to 12 months or more from the date of the late/missed payment. Other items lenders consider on a credit report are the amount of credit the borrower has available and the amount of credit used. Ultimately, lenders want to see that you have a high amount of credit available but only use a small portion of it. Lenders also consider the length of time credit accounts have been opened. The longer, the better. So, avoid closing old or unused lines of credit because they have the potential to improve your credit score. Closing old or unused lines of credit decreases the amount of overall credit available and has the potential of erasing good history from your report.
Keeping in mind the tips in the above, remember that these are just the first things to consider before shopping around for a mortgage. If you find that your situation maybe a little different and you have additional questions, be sure to contact our preferred lenders for specific guidance to your financial situation and get you on your way to homeownership.