With so much economic uncertainty, its understandable if youre hesitant about moving or making your first home purchase.
After all, its a big commitment.
Here are some tips to help get you into the right home.
The minimum credit score required for conventional mortgages backed by Fannie Mae or Freddie Mac is 620.
However, individual lenders may set their own higher standards.
To get the lowest interest rate, youll want to improve your credit score to at least 740.
Start saving for your home early
The purchase price is just one piece of the puzzle.
This could end up costing tens of thousands of dollars.
A 20% down payment is the standard recommendation, but its not required.
Where you keep your savings depends on when you plan to buy your home.
If its within the next year or so, you may want to stick with ahigh-yield savings account.
These fees are based on several factors, namely a buyers credit score and down payment.
Now, that same purchase will incur an LLPA of 1.5%.
Overall, those with high credit scores will still pay less in fees than those with low scores.
But buyers with low credit scores will face less of a penalty than they did previously.
you’re able to see tables outlining the fee framework forFannie MaeandFreddie Mac.
A preapproval is when a potential lender checks your background to see to it you qualify for a loan.
Because preapprovals are loan applications that trigger a hard credit pull, first check to see if you prequalify.
A prequalification carries less weight than a preapproval, but its still worth doing.
Lenders often publish their rates for different mortgage types online, which can help your research.
However, the rate a lender advertises may not be the rate you qualify for.
Consider how much room you have in your budget tomake monthly payments on your home.
Determining your ideal monthly payment will help shape your target price for a home.
To do this, review yourbudgetand include what a potential new home payment looks like.
Browse homes (finally!)
Looking at homes should be one of the last things youll do in the homebuying process.
Navigating the housing market isnt easy.
Buying a home will likely be the most expensive purchase you ever make.
Dont settle for anything less than whats best for you.
