Many homeowners dream of paying for their new home in one lump sum, but the reality is most people need a mortgage to achieve homeownership. But applying and shopping for the right mortgage with the optimal rates and time frame suitable for your unique financial situation can be tricky, especially since there are multiple factors that can influence your choices. 

Take It Slow and Do Your Research

Before you shop around for homes in your ideal neighborhood, here are some things you should take into account: 

Factor #1: Your Credit Score

It’s tempting to speed up the process and look around for the home of your fantasies, but it’s important to take a step back and focus on your credit score first. Your credit history will impact several aspects in the home buying process, from getting more competitive packages to leveraging lower interest rates. 

Conventional loans, for example, require a credit score of at least 620 or higher to become eligible for better loan options. The higher the credit score, the better your chances of securing lower interest rates, but anything lower than the minimum needs further improvement. 

There are other loan options dedicated to homebuyers with less-than-ideal credit scores, but it’s better to get a head start by improving your credit score in advance so you have more options. If you have a spouse, keep in mind that the lenders will acknowledge your mortgage as a “representative credit score,” wherein they will use the lower of the two credit scores. 

Factor #2: Pre-Approved Mortgage 

Now that you know your credit score plays a pivotal role in your homebuying journey, the next step to boosting your chances of bagging your dream home is to venture into the market with a pre-approved mortgage. 

This involves discussing your financial situation with a loan consultant so you can find the right house that you can comfortably afford! A pre-approved mortgage also boosts the seller’s confidence in your offer since your pre-approval letter serves as proof of your seriousness as a homebuyer. 

The Bottom Line: Exploring the Key Factors to Consider That Will Impact Your Home Buying Experience

Buying a house for the first time is a milestone worth celebrating and while it’s undoubtedly an exciting experience, it’s also one of the most expensive investments in a person’s life. It’s one of the biggest undertakings that can impact your financial stability for years to come, so it’s important to jump into the process prepared as much as possible. 

How Can Our Licensed Mortgage Experts Make Your Mortgage Shopping an Easier Experience?

Comparing the right lenders to fund your dream home involves a complex process, but rushing into a deal you cannot truly afford in the future will only lead to costly consequences in the end. 

We can help simplify your experience as you shop for the right lender who offers the best rates that suit your needs, so you can unlock your dream home in terms you can live with for the long run. 

We offer purchases, refinances, cash-out loans, and other mortgage options for first-time homebuyers, so get in touch with us at 704-285-8020 to see what we can do to widen your choices.