- Know Your Credit : When you’re ready to buy a home, the first thing you should be armed with is knowledge of your credit history. Knowing this and ensuring that all issues are rectified will allow you to be in the best position to get the home you want.
- Housing Payment History: You’ll want to demonstrate a verifiable housing payment history. This could be with a previous or current mortgage or rent payments. If you do not own or rent, contributing a dedicated dollar amount on a monthly basis of verifiable transactions (payment to a relative you are living with) works as well.
- Get Educated: With Community Bank you will have a lending specialist who will take the time explain every step of the process and get to know you. You’ll make decisions together that will impact your future, so choose a partner that you can trust and be open with.
- Get Prequalified: A prequalification certificate for a mortgage will let you know how much house you can afford. These days, many realtors won’t show houses without one. Note that self-employed borrowers will need to show a minimum of two years of income and both their personal and business tax returns.
- Financial History: To get prequalified, you’ll need to demonstrate a responsible financial history and that you’ve saved enough for a down payment and all closing costs. Your savings, income and all gifts will have to be verifiable.
- Explore Your Options: Become acquainted with the different kinds of mortgages. There are many options out there, beyond the traditional mortgage. We can help you understand the most appropriate mortgage for your situation. For an overview of the different mortgages that are available, click here. Now that you’re set up for success, take time to discover what you can afford, where you want to be and what type of house is best for you. Here are a few tips to follow as you get closer to finding the home of your dreams.
- Budget: Create a detailed budget of all income sources and living expenses. This will help you understand how your new home will affect your overall budget. You’ll need to factor in expenses beyond the mortgage: property and school taxes, home improvement and maintenance costs, homeowner’s insurance and more. Don’t forget to review any outstanding debts (credit cards, school loans) and plan for how you intend to pay them off.