Do you want to buy a bigger and more beautiful townhouse in Wenonah, NJ but are worried that your current savings isn’t enough? Then it’s time to save more money so you can make your budget much bigger. Here are some expert tips that you can follow to help you buy your dream townhome.
1. Improve your credit score before applying for a home loan.
To get a cheaper loan, lender fees, and interest rates, you need to have a higher credit score. How do you improve it? Before applying for a home loan, make sure to pay your credit card bills on time. Pay down your credit card balances so that they total to less than 15% of your credit limit. You need to prove to the lender that you are capable of paying your loans. Thus, maintaining a payment history of your credit cards, other loans, as well as bills is necessary. Also, financial advisers recommend against opening a new credit account as this may drag down your credit score.
2. Aim for a bigger down payment (10% and 20%).
Banks like working with clients who can make a bigger down payment for their new townhouse in Wenonah, NJ. This proves that they can pay for their loan on time. A sizeable down payment that’s between 10% to 20% lets you choose a shorter and cheaper mortgage term and pick a more desirable townhome. Moreover, it will also cut down the costs of your monthly house payment.
3. Use the builder’s lender.
Builders of townhouses in Wenonah, NJ give discounts to buyers who use their partner mortgage lender. This lets you save a lot of cash on closing costs. Aside from the savings, there are many more reasons why it makes sense to use the builder’s lender. For one, mortgage approval is faster and easier since the lender knows the builder’s reputation well. Another advantage is that the lender can lock in your mortgage rate longer than 30 or 60 days and potentially give you a lower monthly rate.