BECOME A FIRST-TIME HOMEOWNER
Ready to bask in the ultimate joy and accomplishment of first-time homeownership? It starts with a solid partner on your side – one who will ensure a smooth process that ends with you cheers-ing in your suburban backyard, high-rise balcony, or intimate patio.
Yes, buying a home can seem daunting and mysterious. But our team of local loan officers streamline and simplify the journey every step of the way, so you can stay focused on the end prize: achieving the American Dream (and – let’s be serious now – choosing paint colors and furnishings).
It starts with giving us a call or filling out our prequalification form. From there, we’ll connect you with a local loan officer, who will make tailored recommendations on the best loan for your individual needs. We’ll handle all the details — from origination to closing. This adds up to less red tape, fewer documentation requests, and faster closing times, which means you’ll have those keys (and a celebratory drink) in hand in no time.
Budget for a Home
If buying a home is your priority, it's time to buckle down on your budget. Purchasing a home is a huge financial commitment and nothing is more important than organizing your finances before you sign on the dotted line.
You don't need a degree in accounting to make the planning process work in your favor. Ultimately, it's a matter of creating a simple budget, including your income, savings, and debt-reduction goals. In addition to benefiting your own finances, these are items that will benefit you when you're talking to a lender.
How do you start saving? The easiest way is to set up an automatic transfer of funds, perhaps a few hundred dollars a month, from your checking account into savings. And what about debt reduction? There are numerous approaches you can take, but the key is that you're keeping credit card and other debt balances as low as possible — again, something that lenders will want to see prior to a purchase.
Know Your Credit Score
Credit scores remind us of school report cards – the higher the grade, the better. These ever-important numbers are compiled by the three major US credit-reporting agencies, and they impact the kind of loan and mortgage you’re able to get. But you don’t have to be valedictorian. When deciding whether to make a loan, Sierra Pacific Mortgage evaluates the 4 Cs:
Capacity. We look at your income, employment, savings, and monthly debt payments to make sure you can take on a mortgage comfortably.
Capital. We consider your readily available money, savings, investments, properties, and other assets that you could sell quickly for cash. It’s important to have reserves.
Collateral. We consider the value of the property and other possessions that you're pledging as security against the loan.
Credit. We check your credit score and history to assess your record of paying bills and other debts on time. Improving your credit score isn't an overnight fix. Start by paying any past due bills, paying all your upcoming bills on time, and keeping your credit card balances below 30% of the credit limit.
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Still have questions?
- We have loan programs that fit most financial situations.
- We know that only one thing really matters to you - being approved for your loan.
- Contact a member of our team today.