Spring here in eastern North Carolina is time of rebirth! After the winter months, we are ready for warmer days ahead. While some focus on spring-cleaning or gardening, there are others who are ready for a much larger spring project – buying their dream home. If you’re ready to start looking for a new home, here are a few things you should keep in mind.
Boost Your Credit Score
Knowing your credit score before starting the home-buying process is an important step in the preapproval process. Lenders use your credit score to determine if you qualify for a mortgage and at what mortgage interest rate. Obtain your credit reports to determine if the information is correct, if there are late or missed payments, amount of money owed on credit cards and if any information needs to be corrected.
If your credit score is lower than it should be to be able to purchase a home, then take the time to improve your score to where it needs to be. It is possible to improve your score, but it does take time. There is no fast way to increase your score. It makes sense to wait until you improve your score before purchasing a home.
Get Prequalified
Before you start house hunting, you should consider getting prequalified for a mortgage. A prequalification letter is a must-have in today’s competitive market. It shows you are serious and can also help your offer stand out. NC Community Credit Union can help you with this very important step.
Build Up Your Savings
Buying a home is expensive. You will need enough money for the down payment, closing costs and other mortgage-related expenses. The amount you will need will vary depending on the loan program and the home you want to buy. When you meet with our lenders, we will help you determine how much you will need to purchase a home.