Be a prepared homebuyer!
A friend recently asked me “What can I do now if I want to start looking for a home in a few months?” She says her credit score could use a little help and has heard from friends who have recently purchased that the "buying process" can be daunting. She simply doesn't want to find the perfect house and get her hopes up only to be rejected by the bank.
First, I suggested she sign up for the ReNeighbor Home Buyer Bootcamp. The comprehensive four week program prepares you for the complete homeownership lifecycle and follows up with you post bootcamp to help you get to the closing table.
I also provided these three tips to get her ahead of the game.
1. Take a look at your credit report.
If you find any discrepancies, they can take an extended period of time to resolve. Taking a look now reduces the chance of surprises or setbacks during the underwriting process.
2. Pay off small debts.
If you have debts that you could pay off if you focused for 2-3 months, then do that. This will improve your debt to income ratio, increase your credit score and allow the process to move along smoothly.
3. Start an emergency fund.
Most of us are super focused on saving for a down payment but truthfully before you save for a downpayment you should have a 6 month emergency fund. If it can be for your predicted monthly expenses as a homeowner even better! This allows for a clearer mental state to tackle and remedy any financial challenges should they arise.