“Financial confidence is all about knowing the resources available to you, and taking advantage of them.”
The first step in purchasing a home is making the decision. As an informed and empowered saver, you will weigh the pros and cons of owning a home vs. renting, and have done a ton of research.
Then, you’ll prepare to purchase a home. This step is extremely important as it will help determine what kind of mortgage you are able to get. In the preparation phase, you will begin to build your credit score to at least 580 as well as start saving for your down payment.
The third step is shopping for a real estate agent, your new home, your insurance, and your mortgage! This is the fun part, but it’s also stressful - and incredibly important that you do plenty of research!
In this episode, we talk about how housing counselors can support you during the homebuying process, downpayments and downpayment assistance, and getting the best interest rate.
One resource you may want to use is a housing counselor. A housing counselor meets with individuals to give them specialized and specific expertise that caters to their unique situation. They will help you financially prepare to buy a home, including an action plan to help you make sure you nail every step of the process.
Saving for a down payment may feel like the biggest challenge, especially since most lenders will tell you that you need to put at least 20% of your home’s value down. However, programs like the FHA loan or your state’s home finance agency can help you decrease your down payment.
When shopping for your first home, be sure to shop around for a great mortgage rate as well. If you are having trouble getting a good rate, you may want to spend time improving your credit score so that you don’t spend more than you have to on your mortgage.
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