Set your short- and long-term financial goals.
 

Now is the best time to consider major lifestyle choices in addition to your home purchase, like saving up for travel, future education or retirement plans.

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Create a monthly budget.

By creating a budget, you can better evaluate expenses that could (or should) be trimmed, while also factoring in additional homeownership costs such as maintenance and repairs.

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TIP: Test your new budget! To help save, live as if you only have a portion of your household income for six months. At the end of six months, you could have a healthy amount saved as a cushion for added expenses!

Determine how much you can afford.
 

Look at the goals you set and the amount you put into your budget, and stick to it. Don’t allow a potentially inflated prequalification amount make you think you could buy a more expensive home than you can afford.
 

Visit usbank.com and choose from a variety of mortgage products and applicable calculators to help you determine how much you can afford.

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Connect for success

To help with the purchase of your first home, stay connected with someone who has experience and your best interest at heart. Find a local mortgage loan officer at mortgage.usbank.com.

Know your score.

To get the best possible loan rate, your credit score goal is a 740 or higher1. By knowing this ahead of time, you can work towards improving your rating before you start the house hunt. View your credit score for free by visiting usbank.com/freecreditscore2, or annualcreditreport.com.

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Request a copy of your credit report and verify it’s correct.

  • Pay down balances on existing loans and credit cards.
  • Apply for and open new credit accounts only as needed.
  • Don’t close old, paid off accounts – it can hurt your score, not help.
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Get familiar with loan terms

When a bank or lender is determining your loan amount and terms, they will consider:

  • Credit
  • Income
  • Debt-to-income ratio

By understanding these factors, you can improve things such as credit rating or debt-to-income ratio to help you qualify for a better mortgage interest rate.

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Save for closing costs.

On average, closing costs can range from 2% – 5% of the total cost of your home purchase. Be sure to include this fee in your budget so that you aren’t caught without enough savings for your loan closing.

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Save for closing costs.

On average, closing costs can range from 2% – 5% of the total cost of your home purchase. Be sure to include this fee in your budget so that you aren’t caught without enough savings for your loan closing.

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8) What are your feelings on required paperwork?

A:

It’s a satisfying hurdle to clear.

B:

It is what it is.

C:

I absolutely loathe it.