In a New Home for the Holidays | Cleveland Bradley County Teachers Federal Credit Union
Welcome to November! Can you believe that we’re this close to the holiday season? What better way to bring everyone together than at the Thanksgiving table located in your new home? Our team at Cleveland Bradley County Teachers Federal Credit Union wants you to know that it can happen!
Financial Advice for Buying a New Home
While buying a new home can seem like a financially intimidating task, there are steps you can take to prepare!
Improve Your Credit Score
Depending on the type of mortgage loan you’re applying for, the minimum credit score required will vary. However, the higher your credit score, the better rate you can receive. Therefore, it works in your favor to raise your credit score as much as possible before applying for a mortgage loan.
To help raise your credit score, you can:
- Keep credit card balances low
- Pay off debt
- Pay your bills on time
Consider How Much Home You Can Afford
Just because you are approved for a $200,000 mortgage loan doesn’t necessarily mean you should go out and purchase a $200,000 home. There are many factors you need to consider when considering how much home you can afford, including:
- Your monthly income
- Other debt like credit cards and student loans
- Monthly bills, such as smartphone, car payment, utilities, savings, etc.
When you add all these numbers up, purchasing a $200,000 home may not be the smartest move. Therefore, take all aspects of your budget and calculate how much of a mortgage payment you can comfortably afford before using the full amount of your pre-approval mortgage loan.
Save for a Down Payment
Most professionals recommend saving at least 20 percent for your down payment in order to help you save more money in the long run. However, this isn’t necessary to purchase a home now-a-days. But if you can put down any cash, it can be better than putting down zero for your down payment.
To save for a down payment, you may want to consider a CD (certificate of deposit), a high-yielding savings account, or a money market account.
Are you in the market for a new home? Visit the Cleveland Bradley County Teachers Federal Credit Union website today to learn more about our mortgage loan!