Thinking about buying a house but aren't sure where to start? Don't worry! Below are a few tips to help you prepare for the home buying process!
Credit Score
While it's not the only consideration in being approved for a home loan, lenders do always review your credit report. A credit report will show what loans you've had in the past and if they've been repaid on time. Before applying for a home loan, it's a good idea to review your credit report. You can view your credit report for free one time each year at annualcreditreport.com.
Know How Much You Want to Spend
When looking for a home, knowing how much you can comfortably afford each month will help guide your price range search. If you prefer a lower monthly payment and plan to stay in the home for a few years, a longer-term mortgage may be a good option. If you want to pay off your mortgage sooner, a shorter term often comes with a lower interest rate, but your monthly payment may be higher (remember, higher payment, but you're paying your mortgage off years sooner!). Talking to a loan officer before starting your home search can help you know your options, and being pre-approved can make you a more appealing buyer.
Saving for a Down Payment
While a down payment isn't always required, it can put you in a better position when buying a home. Before you start applying, knowing how much you have for a down payment will help the loan officer find the best loan for you!
If You Want the Right Home Loan, Start by Talking to the Right People
As a home buyer, you have an exciting journey ahead! At Knoxville TVA Employees Credit Union, we see beyond just numbers and credit. We like to talk to each applicant to get a better sense of your entire financial situation. After knowing what you're looking for, we will suggest loan options that best fit your needs. Find out more about our difference at tvacreditunion.com/homeloans.