12 days to become a better homebuyer
When it comes to buying a home, you almost certainly have more options than you realize. In virtually all of those situations, we can help you move forward. While we are mainly known as a mortgage lender, we also have a vast array of different ways that we can help you achieve your financial goals, whether that is to become a homeowner or any number of other milestones you want to reach.
So, in honor of the upcoming holidays, we gladly present you with the 12 days to become a better homebuyer and more. A careful consideration of just one point on this list per day can lead to you becoming more financially savvy with a better knowledge of what we can do for you — all while being able to plan your next move with confidence and personal agency.
Day 1: Credit Score
An excellent place to start is with your credit score, also called your FICO® score.* This score will play an important role in determining the interest rate you receive, possibly even unlocking some loan options if it's high enough.
Many factors go into determining your credit score, so there are several ways you can attempt to improve it, including: lowering your overall credit debt, ensuring that you make any debt-related payments on time, not shutting down or opening new lines of credit and keeping 'hard' inquiries into your credit score to a minimum.
Your credit score is a quick, at-a-glance glimpse of your overall financial health, one which lenders of all kinds will use to determine the risk (or lack thereof) of your loan. It's the best place to start if a loan of any kind is in your future.
Day 2: Build a Budget
Creating a reasonable and realistic budget for your finances is one of the tried-and-true ways to stay solvent and stable, particularly when it comes to a mortgage loan.
All it takes is an honest look at your income versus your expenses, which would include your monthly loan payment. Be sure to include a tiny bit of wiggle room in each category, particularly when it comes to morale boosters like entertainment and dining out.
From there, it's a matter of sticking to the budget. Obviously, no one is perfect in their spending habits, but staying within budget more often than not can save you from having to live on the edge. After all, who wants to live with no margin for error?
Day 3: Affordability Calculators
With regard to Day 2's entry on budget, if you need a little help knowing how much a loan could run you ahead of time, we have an affordability calculator tool on our website. It can help you know how much home you can afford, see what your down payment and monthly payments might look like, and even get a sense of any property taxes or insurance that might come into play as well.
Calculators of this type are, of course, built on estimations, so bear that in mind as you use it. If you are ready for a more in-depth look at what your mortgage situation could be, speak to one of our expert loan officers. They can answer any of your questions and get you on the path to homeownership.
Day 4: PowerBid Approval
PowerBid Approval is an exclusive pre-approval program that allows you to supercharge your mortgage offer to a potential seller. Once everything is in order, you receive a letter showing the seller that you are a qualified loan candidate and that your loan will have zero problems being fully underwritten. This allows homebuyers to compete directly with all-cash offers.
If you look at it from the perspective of the seller, they'll want to know that your offer is a serious one and that you'll be able to close on time with as few bumps in the road as possible. PowerBid Approval gives you a serious amount of homebuying horsepower, even in a highly contested home market.
Day 5: Home Value Estimator
If you plan to sell your home or want to tap into the equity that you've built up, it helps to know just how much your home is worth. Once again, we've got you covered with a home value estimator. All you have to do is type in your address and, in seconds, the estimator will be able to give you three values: the high-end value, the low-end value, and the average of the two.
The estimator uses up-to-date market data, comparing your home with others sold in your area with considerations to the home's features. Of course, there's no guarantee what your home would actually sell for (there are far too many variables), but this can give you a great starting point to make your plans.
Day 6: Same Day Mortgage
Mortgage loans generally take a long time to process, right? Well, no, not always. We have pioneered a way to put qualifying loans in the fast lane. The best part is that you just need to make sure you provide all the regular documentation up front through our online portal or the Rate App. We do the rest.
If your loan qualifies for Same Day Mortgage, you can get an approval in one day and be able to close on your loan in as little as 10 days. Moving this fast can help your offer stand out from the crowd and could even help you beat your competition to the finish line when it comes to the home of your dreams.
Day 7: Down Payment Assistance
Perhaps the most daunting part of buying a home can be having enough for a down payment. This is especially true for first-time homebuyers. The good news is that we offer a wide variety of down payment assistance programs to help you get the home of your dreams.
Your city, county and state can make a big difference in which program works best for you, so definitely talk to one of our loan officers in your area. They will have the regional knowledge to find the best down payment program or solution that's available to you.
Day 8: Rate Reduce
If you're looking for a way to make housing more affordable so you can get your proverbial foot in the door, our Rate Reduce program could be the solution you're looking for.
Rate Reduce is a temporary buydown program which reduces the interest rate on your mortgage for a particular period of time. After that initial period, the payments will go up. The seller will need to fund this, which is called a “seller concession,” or the builder if you're seeking a new home construction. There are many different facets to buydowns through Rate Reduce, so you can find out all about it in the article here.
Day 9: Insurance Savings
We are more than a mortgage lender. Case in point, now we offer a wide variety of insurance products through more than 50 of the top providers, including Allstate, Liberty Mutual, Progressive, Nationwide and more. You can shop on our website or the Rate App.
The type of insurance available is anything from life and auto insurance, to pet insurance and, of course, house insurance (which is convenient because you’ll need home insurance as a homebuyer). So, if you're looking for a one-stop-shop for all your insurance needs, we can help you with that.
Day 10: Personal Loans
In addition to insurance, we also offer personal loans for when life inevitably throws a curveball, or you just need some extra funds for that next big project or goal. These loans are typically low interest and don't require collateral the way other types of loans usually do.
We also pride ourselves on delivering quickly, so you have access to the funds as soon as possible. It's just one more way that we try to make life easier and minimize those bumps in the road. For more on the advantages of taking out a personal loan, read here for more information. That brings us to our next point...
Day 11: Renovation Loans
As you can imagine, if we offer personal loans, we also offer renovation loans. Sometimes you wind up with a fixer-upper, whether you buy it, inherit it or live long enough in your home. At some point, every home needs a refresh. A renovation loan gives you the means to update, upgrade or remodel your home to the way you want.
We have a number of loan types that can help you get on the road to renovation. Whether you need something major like a structural repair or you want to give your home a luxury makeover, we can help you get to where you want to go.
Day 12: The Rate App
We've mentioned it a few times now, but we recently launched the Rate App. You can find virtually every item we've mentioned on this list there. On it, you can apply for loans of all kinds, use the financial tools and calculators as well as read up on the mortgage trends and news that directly affect you.
Besides just a mere financial app, we take a holistic approach to your well-being by acknowledging how financial and physical health are intertwined. That's why we have an incredible variety of exercise, yoga and meditation resources on the Rate App as well. You can find it in the Apple Store and Google Play store.
Conclusion
As you can see, we have a broad selection of financial products and offerings available to suit a wide range of needs and situations. Whatever you may need financially, chances are we have it here. It might seem like we have everything plus the kitchen sink, but we prefer to think of it as a veritable holiday feast of ways we can help you... plus a partridge in a pear tree!
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.
*Rate does not provide credit counseling or credit repair services. If Applicant self-reports credit score as “needs improvement,” Rate will not run credit or provide credit scores via the Digital Mortgage. Applicant may request credit scores by contacting Rate.
Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google Inc.