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Paving the Way For a Smooth Road to Home Ownership

Simple planning and saving tips for St. Louis first-time home buyers.

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Purchasing your first home is a huge investment; it is also one of the most rewarding ones you can make. If home ownership is part of your future plans, it is never too soon to start planning ahead.

Start a Savings Account

Once you have a time frame in mind for when you think you will be ready for home ownership, open up a savings account. Consider opening a short-term investment account such as a CD. The nice thing about this type of term account is that you are discouraged by withdrawing any funds early by penalty charges.

If you are hesitant, thinking you may need some access to your money, there are other higher interest savings accounts to consider. The important thing is that you are putting money aside for a down payment. Not only will this save you money on PMI insurance when you are shopping for a mortgage, it will make you a more desirable applicant.

Watch Your Credit History

Your credit report is going to make a big difference in the type of mortgage you may qualify for. Pay your bills on time and avoid having multiple forms of credit with high limits. Some of your utilities can also show up on a credit report so make sure you are paying those on time as well.

Another thing about a credit report that many people don’t realize is that a high number of inquiries will also bring your score down. Only apply for credit that you actually need and will use, and keep your balances at less than a third than what is available to you. Lenders generally do not like a borrower who quickly maxes out all of their available credit. On the other hand, no credit may be just as worrisome to a lender as bad credit, so you will want to establish a history; just make sure that it is a good one.

Know Your Budget Before You Shop

Once you have a substantial amount of savings and your credit history looks good, you can begin to shop for your mortgage. Shopping for the house first makes no sense if you have no idea how much credit a mortgage broker will offer you. Bring all of your information to a qualified broker like Better Rate Mortgage to find out not only how much house you can afford, but what kind of mortgage options you have.  The “TBD Mortgage Approval Program” can give you the confidence of a “Cash Buyer” while buying a house in St. Louis.

If you prepare ahead of time and call Better Rate Mortgage, owning your first home will be a reality! Call us today at (314) 361-9979.

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Whether you’re purchasing your first home or taking cash out to make your dream home even dreamier, the door is open. Welcome to Better Rate Mortgage.

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Couple laughing and holding keys to new home