Saving For A New Home

Get your credit score ready

If you want to get the best mortgage possible, you need to get your credit score as high as possible. You’ll get the best possible mortgage and save a lot of money if you have a good credit score.

If your credit score needs to be improved, there are many things you can do to improve it. Examples include paying down debt, diversifying the types of credit you use, and paying your bills on time every month. 

Get the best possible mortgage

The easiest way to get the best mortgage rate is to shop around as much as you can. Talk to several banks and credit unions. You’ll be surprised to see the different prices they offer, and you can save thousands of dollars.

The same thing goes for homeowners insurance - shop around! But when it comes to insurance remember that you shouldn’t automatically pick the cheapest policy you can find. Make sure you understand what is and isn’t included in your insurance.

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Bring a second opinion along

It’s easy to fall in love with a house. If you get excited about a new house you may miss flaws and make an expensive mistake you’ll regret.
 
Bring a family member or a friend along who doesn’t have any interest in which home you buy. They can be a good reality check on whether that home is worth it or not. They may also notice something you missed.

Be smart about size

When you apply for a mortgage, the bank may be willing to lend you more than you really need. Don’t spend more than you need to. The lower payments that come with having a smaller mortgage can be really helpful when you’re trying to save for retirement. A smaller home also means less money spent on repairs, utilities, and upkeep. 
 
Don’t let the bank tell you how much you can afford - you want to be able to afford the 20% down payment. This is where that second opinion we mentioned above can be very helpful. Your home can be your castle without being a literal castle.

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