If you’re considering purchasing a home, financing may be heavily on your mind . It’s estimated over 64 percent of
homeowners use a mortgage to finance their home purchase. 

Having a mortgage loan can provide you and your household with the financial leeway to buy the home of your dreams.
However, before applying for a mortgage loan, there are a few essential steps to take into consideration. 

Inquire about your credit 

Many lenders require a credit check before approving a loan application. Checking your credit score can help you to
pinpoint areas you can improve on to raise your score, which can make you more eligible for home loans. 

Common areas to check and maintain to help improve your credit score include: 

• Paying bills on time -This factor has a considerable impact on your score.
• Examining your credit report for inaccuracies which may be bogging down your score. 
• Keeping old accounts open even if paid off which display timely payments. 

Explore loan options 

There are many types of home loans on the market, so doing your research can  help you find the one best fitting
your needs. 

If you’re searching for an easy to obtain mortgage loan, search up FHA loans. These loans often don’t require high
credit scores and are easy to apply and qualify for. However, many of these loan companies do require their
borrowers to get home insurance which does add up over time. 

Conventional loans do have stricter requirements however you save money over time because if you can put up a down
payment of 20 percent or more, mortgage insurance isn’t needed.  

Get a pre-approval letter 

Getting a pre-approval letter is a great way to see if you meet the requirements for the loan amount you wish to
receive to purchase your home. It can also help you get a better idea of the amount you qualify for to better adjust
your budget. 

Finding the right financing for your home purchase may feel like an upward hill climb, however with research and
preparation, you can find financing for the home of your dreams.