Ask an Expert: Spring Cleaning (to buy a house)
If you’re thinking about what to purge when you’re doing your spring cleaning, why not start with throwing out old beliefs you’ve had about buying a home? Today’s latest solutions and tools will give you a fresh approach and confidence to affording a home. For instance:
- If you believe that you need a 20 percent down payment to buy a home, the reality is there are 3 percent down options for creditworthy buyers, which, for eligible buyers, can be complemented with down payment assistance programs. You can look into a low-down payment option like Bank of America’s Affordable Loan Solution loan where borrowers can put as little as 3 percent down with no private mortgage insurance required.
- Keep in mind that you also don’t need a perfect credit score to obtain a home loan. There are responsible mortgage options that enable creditworthy homebuyers, who meet certain income limits and other requirements, to become homeowners at an affordable entry point.
- Student loan debt does not have to prevent you from purchasing a home either. Those with student loans can look into graduated repayment plans, which will allow them to start low and then incrementally raise payments every two years to match their income.
- Think outside the box and use technology to your advantage when buying a home. You’re probably already comfortable with digital tools for other aspects of your life. Using a digital mortgage, like the Bank of America Digital Mortgage Experience™, for every stage of your homebuying will make the process more efficient and personal. You can start the loan application process wherever you want on your own time from your own mobile device. You can even prequalify to get an estimate of how much you can borrow, or take it a step further and get preapproved for a loan before you start shopping for a home. You can view a short video about getting a preapproval here.
Ready to spring into action? Regardless of where you are in the homebuying journey, you can start a conversation with experienced lending officers to guide you through each step, help you balance your priorities, and make sure that you are prepared and confident about becoming a homeowner.
Kathy Cummings, SVP Homeownership Solutions and Affordable Housing Programs, Bank of America