Low Interest Rates Offer Opportunities For First-Time Buyers

If there is a bright spot to be found in the midst of a pandemic, it may be the opportunity for young adults to transition from being renters to becoming first-time homeowners. Interest rates on mortgages have plunged to record lows.

Before you head out to look at homes with a real estate agent, take some time to go over your finances to decide how much you can afford to pay for a new home. Things to consider include the following:

• Down payment: The difference between the price you a seller and the amount of financing a lender will give you is the down payment. The amount of money you have available for a down payment is important because it will dictate the type of loan you may obtain. You may have to delay looking at homes while building up your savings account balance.
• Credit score: Lenders have eligibility guidelines to determine if a borrower qualifies for a loan. Your credit score is one of those guidelines. If your credit score is too low, do not despair. Making payments on time, reducing your debt and other steps can be taken to build up your credit score.
• Get pre-approved: A pre-approval from a lender tells sellers that you are a serious and qualified buyer, which makes your offer to buy a home more attractive than offers from buyers who have not be pre-approved.

Meeting with a MortgageDepot loan officer gives you the information and guidance needed before beginning your search for your new home. Learn more by visiting MortgageDepot.com.