4 Financial Steps To Take Before Buying A Home
You think you're ready to own your home? Here are financial steps you can take before you start searching for home. BUILD YOUR CREDIT. Your credit score is one of the factors the lender will look at when you are applying for a loan. Each loan has a minimum credit score requirement. The higher your credit score, the better your interest rate will be, the more purchasing power you have. Boost your credit score by: Pay bills on time Make frequent payments Dispute credit report errors Get a secured card Request a credit limit increase SAVE FOR DOWN PAYMENT Some buyers are able to borrow money from their 401K while others from their friends or relatives to help them with their down payment. Unless you're working with VA loan, you are going to need down payment when purchasing a home. The higher your down payment, the lower your monthly mortgage will be. Ways to save: Automate a fixed amount into a special savings account very month Cut some unnecessary expenses Improve your in