STEP 1- Get your credit score ready
Your credit score is vital in deciding how much you are able to borrow and what kind of loans you qualify for. Mortgage lenders will look at your credit score to determine how big of a risk you are- the higher the credit the lower the risk. Usually, conventional and jumbo loans require better credit, whereas VA loans have lower credit score requirements.
STEP 2- Get Prequalified with a Trusted Lender
Which lender you choose to work with is incredibly important. When deciding who is right for you, make sure you shop around. At Sage Homes, we have trusted lenders that have proven to have integrity and are at the top of their field.
When shopping for a mortgage, it is essential to understand what type of loan is best for you. Each loan is unique- with varying percentages for down payments and eligibility requirements.
Here are the most loan types:
- Conventional
- FHA loans
- VA loans
- USDA loans
Once you find the right lender and mortgage, it is time to get preapproved! Your preapproval will help you understand your price range and help you move quickly when you see a home you want.
"Conventional loans are not insured by the FHA or VA. Generally, these are a good option if you have a higher credit score and stable employment history. Interest rates for conventional loans are usually some of the lowest." - Caliber Home Loans
STEP 3- Find your perfect home!
Now it is time for the best part- looking for homes and going to open houses! When looking for a home, it is important to understand what is a must, a want, and a wish for you. Your ‘musts’ are things that are deal breakers- like a floorplan with 3+ bedrooms. No house will have 100% of what you are looking for, so establish the top 3-4 absolute ‘musts.’
New construction homes offer more customizability than resell homes- you will often be able to choose some of the finishes and minor design elements depending on the stage of construction. Additionally, new construction homes will have better warranty protection, brand new appliances, and low-cost maintenance.