Financing Your Home
The most significant step to becoming a homeowner is securing the financing of your home. If you’re a first-time home buyer then it’s natural to feel overwhelmed and perhaps even puzzled as to where to begin! At Zia Homes, we do our best to provide all of the upfront information you’ll need to be in the best position possible to buy a new home. When you come to us, we’ll turn those feelings of worry and doubt into clarity and confidence.
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How to Get Started
Before buying a home, there are a couple of steps you’ll want to take to prepare. The following recommendations will assist you in ensuring your finances are prepared to handle not only the purchase of your home but the rates and closing costs that go along with it.
- Check your credit score. Your credit score plays an important factor when it comes to qualifying for a home loan and the rate you’ll be offered. If your score is below 660, you may be expected to pay a higher down payment and the loans you qualify for will be affected. You should aim to have a credit score of at least 700 in order to get the best rate possible. If you have unconsolidated debt, you should work to pay it off.
- Decide what you can afford. Your monthly income in relation to your mortgage payment, other housing expenses such as insurance and utilities will need to be in a proportion that guarantees you’ll be able to afford a home. Exploring what you can afford allows you to have a clear picture of the monthly expenses you’ll be required to meet.
- Determine your down payment. A general rule of thumb is to give a 20% down payment but anywhere between three and 20 is the average. The terms of your loan can make a significant difference as to how much of a down payment your lender will expect.
- Continue or start healthy saving habits. Unfortunately, home expenses don’t end with down payments and closing costs. So even if you’re emptying your savings account to pay for the home, you’ll want to keep building a savings account for any maintenance, repairs, and home emergencies. To keep up with the maintenance of your home, you can expect to spend at least two percent of your home’s value per year.
- Get pre-approved for a mortgage. Once your financing is in a healthy state, you should get pre-approved for a mortgage. Your pre-approval will determine how much you can truly afford and what the terms of your loan may look like. When buying a home, you’ll want to avoid being hit with any negative financial news as much as possible. Exploring your mortgage options early on will paint you a clear picture.
- Buy your Zia Home! Once you’ve been pre-approved for a loan and found a Zia Home that met all of your needs, both structurally and financially, it’s time to work on closing. Your real estate agent should help you prepare to sign your home’s contract, warranty terms and agreement, and loan documents.
Exploring Your Financing Options
There’s a myriad of financing options available but you want to be certain that who you choose to finance with provides the best rates and terms. Most importantly, that the financing option is the right one for you!
Zia Homes works with Rocky Mountain Mortgage Company, our preferred lender, given their experience, professionalism, and amazing mortgage loan options. We believe Rocky Mountain Mortgage provides clients with the most competitive home loan programs in El Paso. They’ve provided homeowners with mortgage assistance since 1985 and we have no doubt that they will make the application process efficient and personable.
Contact Zia Homes to Learn More
We’re only a phone call away! Simply give us a call today. We’d be happy to answer your questions and help you get started on the process of becoming a happy future homeowner.