Are you waiting for improved market conditions before you buy a home? Perhaps you need to address some credit or financial issues before you are ready to jump into the game. Regardless of why you are currently sitting on the sidelines, rest assured that this is not wasted time. You can use this time productively to prepare yourself for the major purchase that is on the horizon.
If you have not recently done so, now is the perfect time to check your credit score and history. If you spot any incorrect items, work to correct the issues. This will pave the way for a smoother mortgage application process. Could your credit scores be higher? Take this opportunity to pay down credit card debt, and avoid taking on new debt.
The down payment and closing costs for a new home purchase can be significant. In fact, at minimum, the combination of the down payment and closing costs could easily reach 10 percent or more. Keep in mind that the lender will also need to confirm that you have at least a few months of mortgage payments in reserve as a condition of closing. With these factors in mind, you can see that it will only benefit you to work on increasing your savings account balance at this time.
Another smart step to take is to get prequalified for a mortgage. Through a prequalification, you could learn about other important actions that you may need to take before you get serious about your purchase plans. This is also a convenient way to determine what your price range is. Are you ready to get prequalified for a home loan? Contact the MortgageDepot lending team today for assistance.
Connect with one of our loan consultants to learn more.