Renters be ready, it's your turn!
Renters be ready! 2023 will be the year of the RENTER!
10/24/2022 FHFA announces eliminating of upfront fees for HomeReady and Home Possible affordable mortgage programs beginning February 2023.
What that means for 1st time home buyers is that it will become more affordable to purchase your first home. That along with home prices coming down as we are seeing, also means it is time to get ready.
Getting ready is simply working with an experienced mortgage professional who has been in the business for 10 or more years as we are seeing shorter term loan originators exiting the business due the massive market change. Make sure whoever you partner with, is going still be in business next year. Someone who can guide you through the complex parts of each loan program, step by step.
7 steps to get started:
- Reviewing your credit report and credit scores and explore ways to increase your credit score. Although these programs allow for a credit score as low as 620, the higher the score the better the interest rate and, all outstanding collections and late payments within the last 12 months are worked out.
- Make sure your employment history is sufficient and cover the most recent 2-year period.
- Have your funds needed for the down payment and closing costs verified and ready to go in a bank account. Gifts are allowed from family member, and they must provide information as well about their bank account.
- Look at your current monthly debt and how it can be reduced. Either by paying it off or refinancing some debt to lower the monthly payment.
- Clearly understand your student loans and what the repayment terms are.
- Decide where and what neighborhoods you want to start looking in.
- Have your mortgage professional recommend a realtor who will look out for you.
After this is in place, only start looking at homes after your loan Pre-approval is in place. The last thing anyone wants is to be disappointed that they can’t buy the house they want.
Feel free to reach out for more information. I can help answer your questions and decide if this is what you want to do.
Example of looking up 100% maximum income allowed:
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.