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FINANCING A NEW HOME? HERE'S HOW Buying a home is one of the biggest financial decisions you’ll make, and figuring out how to finance it can feel like a lot to take in. With so many loan options, credit requirements, and costs to consider, it’s easy to feel overwhelmed. But with the right knowledge—and the right team—you can make smart choices that set you up for success. A trusted Realtor can help answer questions and connect you with the right resources. Here’s what you need to know to confidently finance your next home. CHECK YOUR CREDIT SCORE Your credit score plays a huge role in determining your mortgage interest rate. The higher your score, the better the rate. Before applying for a loan, check your credit report for errors and pay down any outstanding debts. Even small improvements can lead to significant savings over time. EXPLORE YOUR MORTGAGE OPTIONS Not all home loans are created equal. Here are a few common options:
GET PRE-APPROVED A pre-approval letter from a lender shows sellers you’re serious and financially ready. It also helps you understand how much home you can afford, so you don’t waste time looking at properties outside your budget. SAVE FOR A DOWN PAYMENT A larger down payment means a smaller loan and possibly better loan terms. While 20% is ideal, many loans allow much less—sometimes as little as 3%. Still, the more you can put down, the lower your monthly payments will be. FACTOR IN CLOSING COSTS AND OTHER EXPENSES Beyond the down payment, don’t forget about closing costs, which vary based on location and lender fees. Other expenses to budget for include home inspections, property taxes, homeowners insurance, and potential maintenance costs. Your real estate agent can help you estimate the costs specific to your area so there are no surprises on closing day. LOCK IN YOUR INTEREST RATE Mortgage rates fluctuate daily, so once you’ve found the right loan, consider locking in your rate to protect against increases. CONNECT WITH A TRUSTED LENDER Finding the right home loan is just as important as finding the right home. Loan terms, rates, and fees can vary, so it’s worth exploring your options. Your real estate agent can connect you with a trusted mortgage professional who understands your local market and can help you find the best financing solution for your needs.
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