As we move into the new year and begin making our New Year’s resolutions, it’s natural for many to begin thinking about ways to improve their financial health in 2021.
If you’re interested in getting your finances in tip-top shape in order to purchase a new home, you’re in the right place. To kick off the new year, the Schuber Mitchell Homes team has partnered with our preferred mortgage lenders at Flat Branch Home Loans to share their expert tips and tricks on financially preparing for homeownership. Keep reading to find out more!
Meet with a Mortgage Lender
The good news for prospective homebuyers is that the record-low interest rates of 2020 are projected to stick around for some time in 2021. So first thing’s first: connect with a reputable mortage lender - yes, even if you don’t feel quite prepared to take the leap into homeownership just yet.
The team at Flat Branch highly recommends working with an experienced lender through your entire homebuying journey to ensure that you are taking the right steps to get into your dream home. They’ll walk you through the mortgage process and help you determine how much home you can afford.
Take a Look at Your Finances
There are several important steps to take when looking to get your finances in order, and the process might take some time to accomplish. Take these suggestions into consideration and you’ll be on your way to a new home before you know it!
Check Your Credit Score
Before you begin your home search, it’s important to first obtain a qualified credit score. If your credit isn’t exactly where you’d like it to be – that's okay. There are many options for low credit score loan programs, and things you can do in the meantime to begin improving your credit as well.
To start, you can focus on some of the easiest ways to improve your credit score, such as paying your bills on time, avoiding any big purchases on your credit card, only applying for credit accounts when necessary and staying up-to-date with all of your credit accounts.
Start Budgeting
Now that you’re working on your credit score, it’s time to start budgeting for the purchase of your home. The experts at Flat Branch say that while traditionally, “lenders have suggested having a 20% down payment on your mortgage to secure the best rate possible” things are a little different today.
There are now "many programs that allow for low or even no down payment to purchase a home” - which is why it’s important to work with an experienced lender to help you sift through your options.
Regardless of how you’ll tackle your down payment, it’s still important to keep a few tried-and-true budgeting tips in mind. It’s important to take a close look at how you’re spending your money and setting some financial goals accordingly.
Bonus Tip
Do you love a good mobile app to help hold you accountable? The lenders at Flat Branch recommend the Qapital app for financial goal setting and the Mint app for budgeting.
Begin Your Home Search with Schuber Mitchell Homes
At Schuber Mitchell Homes, we believe in making homeownership attainable for everyone, so we work to make the experience as accessible (and fun) as possible.
Our team takes great pride in creating the best communities for families in the Southwest Missouri and Northwest Arkansas areas, and are developing more as we speak! We’d also like to give a big thank you to our friends at Flat Branch Home Loans for collaborating with us on this blog post!
Looking for more financial tips to secure your new home? Join us for a virtual event with Flat Branch on January 28, 2021 - “Improving Your Finances in the New Year”. RSVP for the event, and submit any questions you’d like to see answered during the live Q&A here: https://www.schubermitchell.com/connect/new-homeowner-seminars.
