THE CAREN TEAM'S BLOG

Whether you’re just beginning your search or you’ve been looking online for a while, there is always one major step you will want to take prior to going out and actually viewing properties in person.  For most buyers, using a mortgage to finance a portion or the entire cost of your new home will be necessary.  If you are among this group of buyers, your first step in the home buying process should be getting pre-qualified for your mortgage as soon as possible. 

We find that many buyers believe that waiting until they can get their credit score up a few more points, or they can save up a few more dollars toward their down payment, or some other goal they have will be best to accomplish first.  While this would seem like it makes sense to do before calling a lender and filling out an application, it’s not. 

If you want to work on your credit score and/or save up more money before your big purchase, then by all means feel free to do so, but do it with the help and advice of your lender after they’ve reviewed your credit, income and debts to make sure you’re going about everything in the right way.  We find so many times that buyers want to work on getting their credit scores up by x-number of points and plan to achieve that goal on their own.  Too often in this case, the scores aren't improved much and now they are simply a few months behind in their home purchase plans. 

As far as down payment funds, you may be surprised to learn that what you have in your bank account now, might in fact be enough to purchase your new home, now.  In addition, the money in your bank account typically has very little to do with whether or not you will qualify for your new mortgage.  With all of the down payment assistance programs currently available, you may not need more than a few thousand dollars to close on that perfect home.

Ultimately, you won’t know anything for sure until you talk to a lender and fill out an application which is why we stress so heavily to call the lender first, and then begin your search.