If you are hoping to become a homeowner in the future, we know that you might be like many of our clients and feel discouraged by the increased interest rates and market conditions that make homeownership seem unattainable. While it’s true that interest rates are higher today than they were 3 years ago, it doesn’t mean homeownership has to be out of reach.

Let’s talk about the factors you can control to work toward your goal of homeownership. You can contact us any time to find out whether you can get pre-approved for a mortgage and what your options are, and keep reading to learn more about the factors that are within your control and what you can do about them.

Elevate Your Credit Score to Become a Homeowner

How Can I Become a Homeowner with These Market Conditions?Your credit score plays a pivotal role in determining your eligibility for a mortgage and the interest rate you’ll receive, and thus can be a huge block in your plant to become a homeowner. Elevating your credit score can make a significant impact on your ability to secure favorable loan terms. While you cannot control the range of interest rates available, you can do a lot to control where in that range you fall; the higher your credit score, the better your terms will be.

We have a post to help you boost your credit score to as high as it can be, and a few tips here to get you started:

  • Obtain a copy of your credit report and carefully review it for inaccuracies. Dispute any discrepancies promptly to ensure your credit score accurately reflects your financial history.
  • Reduce outstanding debts and/or ask for an increased credit limit to improve your credit utilization ratio.
  • Set up automatic payments or reminders to avoid missed deadlines. Consistently making on-time payments for all your bills is essential, as your payment history is a critical factor influencing your credit score.

Explore Multiple Financing Options to Find What Suits You and Can Help You Become a Homeowner

Many borrowers are discouraged when they only look at traditional loans and fail to explore other options when trying to become a homeowner. This is especially true if you are self-employed or have a non-traditional income source. Traditional mortgage routes are not the only path to homeownership. Exploring alternative financing options can open up new avenues, especially if you have unique financial circumstances.

For self-employed individuals or those with non-traditional income sources, bank statement loans can be a viable option. These loans consider your bank statements as proof of income, providing flexibility for those with variable earnings. We were one of the first lenders to offer these loans, and are experts in this solution for self-employed borrowers.

Backed by the Federal Housing Administration, FHA loans are government-backed loans with lower down payment requirements. This makes them an attractive option for first-time homebuyers or those with limited funds for a down payment. Depending on how you qualify, you may be able to borrow your down payment as well, or put down as little as 3.5%.

If you are a veteran or active-duty military personnel, VA loans offer competitive interest rates and require zero or low down payment. We can help you explore this option if you qualify, as it can significantly ease the financial burden of homeownership.

Pursue Education

At any phase in the process toward trying to become a homeowner, it will serve you well to pursue education about the lending process and how borrowers are evaluated for approval. Whether you are ready to buy right now or are looking ahead to set yourself up for success, you can spend time learning more about the mortgage process.

Knowledge is a powerful tool in the homebuying process. Educate yourself about the mortgage landscape, loan types, and the overall real estate market. The best way to do this is to seek guidance from experienced professionals like who can navigate you through the complexities of the mortgage process. Spend time reading our blog posts, or reach out to us any time to learn more. We are here to help.

Achieving the dream of homeownership is a journey that requires strategic planning, financial discipline, and informed decision-making. By focusing on actionable steps within your control, your goal might be more within reach than you thought.

We want to support you in reaching your homeownership goals. Contact us any time to learn more about applying for a loan or preparing for a successful home loan experience.