Now is the perfect time to start getting geared up to move out of your parents’ house and into your own home. It can be a great accomplishment for you to grab onto your own place and land. The following are some steps that will give you a greater chance of success so that you can get approval for an amazing mortgage:
1. Save Your Money
Saving money will be your first step. You’ll need a down payment of 3 to 20 percent of the home you purchase. You’ll also need to save money for moving expenses, closing costs, insurance and more. The good news is that you have the perfect opportunity to do it while you’re living with your parents.
2. Establish Stability
Mortgage companies usually look for two years of stable employment and living history. Keep your current job and try to get a full-time position. Ask your parents to write a letter for you that establishes your length of stay and your willingness to pay rent.
3. Boost Your Credit Score
Your credit score will have a huge impact on the interest rate on your mortgage. Try to get your score around 760 points for the best interest rates. Pay all of your bills on time, avoid making too many inquiries and keep your credit card usage to a minimum. You should be able to boost your score drastically within a two-year time span.
4. Study Mortgage Concepts
Do some research to find out the various mortgage types and how they work. You’ll want to have full knowledge of the homebuying system before you become a new homeowner.
5. Search for a Place to Live
Search for a new home for yourself. Make sure it has all the amenities you need, and it’s in an area where you want to live. You should be completely in love with it before you invest in it as your new home.
Now you can start your journey of finding a great home for yourself. Don’t forget to be kind to your parents after you move on.
Contact one of our loan consultants to learn more.