Are you ready to kiss your landlord goodbye?
To start investing in your future?
We’ve cultivated a list of five steps for you to take to make 2019 the year of homebuying.
Take a HUD Certified Homebuyer Education course.
We offer a HUD-Certified, comprehensive online homebuyer education course. It’s self-paced, so you can complete it at your leisure. After, you’ll complete a one-hour counseling session with one of our homeownership services staff members where you’ll review your mortgage readiness status and create a personalized roadmap to homeownership.
Sign up for Online Homebuyer Education Today!
If you learn better during in-person classes, we can refer you to one of our partner organization. We recommend homebuyer education courses offered by organizations without conflicts of interest (this excludes workshops offered by real estate agents or for-profit lenders). You can find a document detailing HUD-Certified homebuyer education classes here.
Check your credit report!
Did you know you can check your credit report from all three credit reporting company (Equifax, TransUnion, and Experian) for free once a year?
If you’re interested in becoming a homeowner, this is where you need to start: www.annualcreditreport.com. The information on your credit report creates your credit score which determines your mortgage interest rate (and if you’re eligible for a mortgage!). Be sure to review all three reports to check them for any errors.
After, check a reliable version of your credit score (we recommend steering clear of Credit Karma). Many companies now offer your FICO score for free, such as Discover (you don’t have to be a Discover card holder) and Mint.
Once you’ve reviewed your credit report and checked your credit score, you can use our customer portal “Compass” to determine your mortgage readiness status. The Compass dashboard helps you visualize your current situation, and we’ll follow up to discuss your next steps, whether it be working to build your credit score, increasing your savings, or beginning to shop for a mortgage!
Budget and Save
You’ve probably seen ads for “100% Financing” – so why budget and save?
Because there are more costs associated with moving into a home than just the mortgage, including buying furniture. Additionally, any cash that you do bring to the table in the form of a down payment will likely lower your monthly payments.
So, how do you set a budget and start saving?
Round Up Your Documents
Taking out a mortgage can seem like a walk in the park on a mid-summer nights eve, or it can feel like a marathon. If you’ve rounded up your documents in advance, we promise it will feel much more like the former. If you wait until your lender is calling and emailing you every day asking for you to hunt down another long lost document, it will be much more stressful and wearisome.
The most common documents that you will need for a lender include:
Depending upon your situation, you may need other paperwork on life events such as if you’ve gone through a divorce or experienced bankruptcy.
Shopping for a Mortgage
Check out this blog post from our sister organization NeighborWorks of Western Vermont on how to find the best mortgage for you.
Keep in mind at this is the biggest purchase you may ever make. Invest the time to shop online or in-person, checking out different mortgage companies and their mortgage products – not all mortgages are the same! The biggest rookie error is choosing your bank or the lender recommended by your real estate agent without shopping around first.
Then, talk to us about our first and second mortgage options:
Enroll in our homebuyer education course today. We’ll even give you 50% off with the promo code “HOME622”!
Click to Enroll Today!