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September Homebuyer Readiness Checklist: Get Ready to Make Your Move!

As the summer heat begins to cool, the real estate market remains hot. If you’re ready to turn your homeownership dreams into reality this September, it’s time to get strategic. With mortgage rates expected to hover around 6.7% to 6.8%, being prepared can make all the difference. Here’s your step-by-step guide to ensure you’re ready to make your move:

Check Your Credit Score

Your credit score is one of the most critical factors in securing a favorable mortgage rate.

Target: Aim for a credit score of 700 or higher.
Tip: If your score is below 700, consider paying off small debts or requesting a credit limit increase on your credit cards—just don’t increase your spending. This can improve your credit utilization ratio, a key factor in boosting your score.

Real-Life Example: One of my clients improved their credit score by 30 points in just three months by paying off a $500 credit card balance and maintaining a low balance afterward. That small change significantly impacted their loan approval process!

Start Saving for Your Down Payment

Saving for a down payment is a crucial step, but where you save can make a big difference.

  • Pro Tip: Open a High Yield Savings Account (HYSA) instead of a regular savings account. HYSAs typically offer interest rates around 4.5%, compared to the meager 0.01% offered by most regular accounts.
  • Benefit: This higher interest rate can give your savings a significant boost over time.

Example: By saving $300 a month in an HYSA, you could earn approximately $3,682 over 12 months—enough to cover moving expenses or other home-buying costs!

Get Pre-Approved

Pre-approval is an essential step in the home-buying process, but don’t stop at just one lender.

  • Strategy: Shop around and get quotes from at least three different lenders. Comparing interest rates, loan terms, and fees can help you secure the best deal.
  • Why It Matters: Even a slight difference in interest rates can add up to significant savings over the life of your loan.

Client Success Story: A recent client saved $3,000 over the life of their loan simply by choosing a lender (Hello 👋) with a slightly lower interest rate and no origination fee. It pays to shop around!

 Understand Your Mortgage Options

When it comes to mortgages, one size doesn’t fit all. Understanding your options is key to making the right choice.

  • For First-Time Buyers: Consider government-backed loans like FHA or USDA. These often have lower down payment requirements, making them accessible for many first-time buyers.
  • If You Can Afford More: If you have the means for a larger down payment, a conventional loan might save you money in the long run by avoiding mortgage insurance.

Ready to Move Forward?

Now that you have the tools, it’s time to take action. Follow these steps, and you’ll be well on your way to homeownership this September!

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