For many singles, couples, and families in the Ashville, NC, area, owning a home is their dream. Often the biggest hurdle for these individuals is worrying about getting a home loan for the first time.
The good news is that there are things you can do to increase your ability to get a 1st time home buyer loan Ashville, NC at a great rate. Getting started on these steps as soon as possible makes it easy to find the perfect starter home in your budget.
Reduce Your Debt
Reducing your current debt level improves your debt-to-income (DTI)DTUI ratio, which is a key consideration for a lender. Ideally, when applying for a 1st time home buyer loan from a conventional lender, your debt-to-income ratio should be less than 42%.
If possible try to reduce credit card debt to less than 30% of the total available credit. It is also helpful to eliminate any other type of debt, including car loans or student loans, or at least reduce the debt as much as possible.
Improve Your Credit Score
Pull and check our credit reports from all three reporting agencies (TransUnion, Equifax, and Experian, and review the reports. Make a note of any errors and follow up with the specific dispute. Removing errors that are negatively impacting your score can boost your number by several points.
Consider the Down Payment
Even if you have the required credit score and DTI, saving to add to the down payment can help you to get a better interest rate. It also reduces the overall interest you will pay over the loan, saving you money on your first Asheville, NC, home purchase.
