Qualifications for Homebuying 2023
The housing market is picking up speed in 2023 with mortgage applications up significantly in the first 6 weeks of the year. If you want to buy a home in 2023, now is the time to get organized and prepare! The first step is to talk with a mortgage pro to understand what you qualify for and what hurdles to address early on. The biggest hurdles to buying a home are often credit and the down payment. Credit is so important in lending because it determines the type and terms of loans you qualify for. The minimum scores required for most loans is 620 but certain programs allow for less. Make sure all payments are made on time to credit cards, loans, and medical bills. Avoid opening new accounts and keep credit card balances under 50% of the credit limit. On the down payment, unless you have a rich uncle, you’ll want to save up! Good news!: it’s tax refund season! This can go a long way in building your down payment since most loans require 5% or less. You can also borrow against your 401k, get a gift from family, or we even offer down payment assistance for those who qualify.