HUD Articles

First-time homeownership is powerful. Your focus could be building generational wealth or creating an investment.

1. Be Sure You’re Ready To Commit To A Loan - The average mortgage loan is 15-30 years

Start by asking yourself these questions:

Am I ready to commit to this home and city for at least 5 years?

Do I have an emergency fund that can cover at least 3 months of expenses?

Do I have a stable income?

2. Don’t Skip The Preapproval - 

Some of the benefits of getting preapproved include:

You know exactly how much home you can afford. You and your real estate agent know your home-purchasing power once you have a preapproval letter in hand. This will help you shop within your budget.

You can make a stronger offer. Sellers need to know that the buyer they choose can afford their home.  A preapproval shows a seller that you have the money needed to purchase the home.

You’ll experience fewer surprises. When you’re preapproved, you’re less likely to run into last-minute surprises or delays with your mortgage lender.

3. Maintain Your Credit

Now is not the time to open a new line of credit, like a credit card or a personal loan. When you apply for mortgage preapproval, lenders will pull your credit report. They’ll do it again before you close on the house and its corresponding mortgage.