As a first time Houston homebuyer, the home buying process may seem daunting. Never fear, there are many great local and online resources to assist you on your journey towards home ownership. Here is a short list of three free resources to help you get started:
1. Check your credit score
The first step in the home buying process is to figure out your credit score. Your credit score will determine the types of loans you are eligible for and what interest rate you qualify for. A credit score of 580 is required for a home loan backed by the Federal Housing Administration and 620 is required for a conventional mortgage loan.
Obtain a FREE credit report from all of the three major credit reporting agencies (Equifax, Experian and Trans Union) from www.AnnualCreditReport.com.
2. Learn the Fundamentals of Good Credit
You're excited to make your first home purchase, but perhaps you've discovered your credit score isn’t as high as you’d like it to be. The Credit Coalition in Houston offers a free six week series of courses on the Fundamentals of Good Credit. This course will provide you with a copy of your credit report and will assist you in understanding all of the factors that go into calculating your score so that you can make improvements.
Register for a FREE class at www.CreditCoalition.org on either Tuesday, Wednesday, or Thursday evenings.
3. Use an affordability calculator
As a first-time homebuyer, it can be a challenge to know how much home you can afford to buy. A good rule of thumb is that the cost of your home should be about two and a half times your annual salary, according to CNN Money. Zillow has an easy to use affordability calculator that can assist you in estimating your price range.
Use this handy FREE affordability calculator from Zillow to figure out what your price range will be for your new home.
