So you found your Century dream home—congratulations! What's next? Unless you have the benefit of paying cash for your new home, you'll need to finance your purchase with a mortgage.
In honor of October’s designation as “Financial Planning Month”—and in preparation for “National Get Smart About Credit Day” on October 19—we asked the industry experts at Inspire Home Loans® to break down some of the best ways to prepare for obtaining a mortgage.
Consider What You'll Need for a Down Payment.
There’s a popular belief out there that you need at least 20% down for a home loan—and it's not remotely true. In fact, loan options like FHA and Conventional allow you to pay as little down as 3.5% and 5%, respectively. And if you qualify for a USDA or VA loan, you may not need to make a down payment at all.
But even with a minimal down payment loan, make sure you're still saving ahead and budgeting for other costs associated with your purchase, including:
- Earnest money deposit (funds you provide at the time of contract)
- Closing costs and pre-paid interest (fees you pay to finalize your home purchase)
Get Prequalified.
What is prequalification?
Prequalification provides an initial assessment of your ability to take on a home loan and takes the following into consideration:
- How much you could likely borrow based on income and debt
- Whether you have a qualifying credit score and healthy repayment history
- What type of home loan you could qualify for
- How much you'd probably want to set aside for a down payment
There's no financial commitment, no negative impact to your credit score, and you come away with a clear idea of how much home you could afford and how to proceed with the home loan process.
Where to prequalify:
One of the perks of buying with Century Communities or Century Complete is that you can prequalify and streamline your financing experience with Inspire Home Loans, our mortgage lending partner. The Loan Officers at Inspire have the expertise to assist with any questions you might have about the process, and can also help you overcome any financial challenges through resources from The Ascent Club—a free, value-added program that offers financial insights and credit education services.
When you prequalify with Inspire, you get a clear starting point and a dedicated team to help you create a roadmap to homeownership!
Not quite ready to purchase but want to prepare?
For a deeper dive on preparing to purchase your home, tune into Inspire Home Loans’ monthly homebuyer workshop series: All You Need to Know About Buying Your First (Or Next!) Home!
This free online webinar brings you all the insights on the mortgage industry and walks you step-by-step through the purchasing process. Check out upcoming events.
Ready to find your dream home?
See what's available in your area! 👇