Becoming a homeowner is an exciting milestone for anyone to reach. Once you’ve decided you’re in the market for a home you may be tempted to start hitting up open houses or looking online to see what’s available. But before you do, check out the 4 tips below that will help make the process much more manageable.

Check and strengthen your credit
Your credit score will determine whether you qualify for a mortgage and affect the interest rate lenders will offer. Here’s what you’ll want to do:

·       Get free copies of your credit reports from each of the three credit bureaus — Experian, Equifax, and TransUnion — and dispute any errors that could hurt your score.

·       Pay all your bills on time and keep credit card balances as low as possible.

·       Keep current credit cards open. Closing a card will increase the portion of available credit you use, which can lower your score.

·       Track your credit score.

Explore mortgage options
A variety of mortgages are available with varying down payment and eligibility requirements. Here are the main categories:

·       Conventional mortgages are not guaranteed by the government. Some conventional loans targeted at first-time buyers require as little as 3% down.

·       FHA loans are insured by the Federal Housing Administration and allow down payments as low as 3.5%.

·       USDA loans are guaranteed by the U.S. Department of Agriculture. They are for rural home buyers and usually require no down payment.

·       VA loans are guaranteed by the Department of Veterans Affairs. They are for current and veteran military service members and usually require no down payment.

You also have options when it comes to the mortgage term. Most home buyers opt for a 30-year fixed-rate mortgage, which is paid off in 30 years and has an interest rate that stays the same. A 15-year loan typically has a lower interest rate than a 30-year mortgage, but the monthly payments are larger.

Research first-time home buyer assistance programs
Colorado has a variety of assistance programs for first time buyers. Make sure to check out the Colorado Housing and Finance Authority website and check out what’s available.

Get a preapproval letter
A mortgage preapproval is a lender's offer to loan you a certain amount under specific terms. Having a preapproval letter shows home sellers and real estate agents that you're a serious buyer and can give you an edge over home shoppers who haven’t taken this step yet. It also lets you know exactly how much home you can afford, which helps manage expectations.

Once your finances are in order it will be much easier to make an offer and make a move for your dream home. Ready to start the process? Contact Metrowest – we’d love to help!