TexasBank Tips for First Time Homebuyers
By: Jordan Cummings
Buying your first home is a very exciting time. It’s best to be fully prepared for the hard work and planning that will go into this purchase. TexasBank is ready to set you up with one of our highly-qualified lenders to help you through the process from start to finish.
Having a great lender is an important aspect of homebuying. Your lender will provide valuable information and suggestions throughout your loan process. They can truly make or break your loan approval. We have a team of wonderful lenders here at TexasBank, and they’re all ready to assist! The very first thing you should do before buying a home is establish your credit. There are many ways to establish and raise your credit. Senior Loan Processor, Teresa Cadenhead, suggests, “To establish good credit, start with everyday expenses such as buying gas or groceries on a credit card then paying it off. Show you have the discipline to repay a debt without being late and maxing out the credit card.”
While you’re working on your credit, save for your down payment. The amount of your down payment will depend on the type of loan you have and the amount the home costs, but having a good amount in savings will help you out. “Sometimes the more you put into a loan the better your rate will be,” Teresa added.
After you’ve established your credit and feel comfortable with the amount you have for the down payment, it's time to start working on your loan qualification. “To acquire a loan for the first-time homebuyer it is best to pre-qualify. Meaning, complete an application online so that the mortgage company will be able to look at your debts vs your income. This will determine the amount of home you can afford. The loan officer will let you know the price range of homes you can look into,” Teresa explained.
Once your loan is approved and your loan officer gives you the price range you can afford, you’re ready to start shopping for homes! One last piece of advice that Teresa gives is to not go for a home at the top of your range. “Taxes and insurance are always increasing. If you are making payments on the highest available loan and then the taxes and insurance increase that could possibly put you in a financial bind,” she explains.
Now that you have the information you need to start home shopping, contact TexasBank once you’re ready to get that approval! We are always excited to help any homebuyer with their process. We look forward to hearing from you soon, and hope that you found these TexasBank Tips helpful!