My Journey So Far On the Path to Homeownership

For the past year we have known that we will be moving to Louisville, Kentucky. We have spent hours online looking at different areas around Louisville for the perfect home. We wanted to make sure we lived close enough to our office but somewhere that had a good school system.

The hardest part has been that we have been in Florida so everything has been online – until last week. We took a long road trip and spent some time with a realtor. He took us around to look at some potential homes and we found the one. You just know it’s the one when you walk in and know that is where you will call home.

We put in our offer and now comes the important part – we need to get a mortgage. We haven’t owned a home in about 15 years so we are considered “First Time Home Buyers“. (You are considered a first time home buyer if you have not owned a home in 3 years.)

To make sure we are in a position to buy a home we have done a few things to prepare for this event. We have made sure we don’t have any debt, we have always paid our bills on time, and we did not open any new credit card accounts so we would have an excellent credit rating. There is so much information and advice out there about getting a mortgage – but these are a good starting point to get financially prepared for the home buying process.

Capital One is a great resource if you are thinking about buying a new home. You may have questions like  what type of loan is right for you, what are the current mortgage rates, and how much house you can afford. Capital One wants to help you understand how the loan process works. They have an online learning center that can help you become the savviest homeowners on the block! They have videos and articles that will help answer any questions you will have.

Buying a home is an important process, and certainly not a simple one. We are now in the loan approval part of buying a home. They need a lot of information and Capital One’s new online resource can help you understand how to navigate this process with a glossary of terms you should know, an overview of the loans available and more.

Here are a few tips for First Time Home Buyers:

• Get your credit score in good shape. Get a copy of your credit report and find out your credit score. If your score is above 740 you are in excellent shape! If there are some discrepancies, get them fixed. Pay off as many debts as you can – every credit card has a minimum payment and the lender will look at what you have due every month to decide if you can afford to pay your mortgage on top of your other monthly bills.
• Figure out what you can afford. It is no fun to look at houses and then realize they were never in your price range. A good rule is that your house payment should not exceed 28% of your monthly income.
• Have you saved for a down payment? First Time Home buyers can buy a home for as little as 3% down, but you also need to remember that you will have to pay for closing costs. Sometimes you can get the seller to help pay for this but make sure you have the funds available just in case.

When you are working with a Capital One to buy your home – they will make it for you to understand the journey.

If you’re interested in learning more about Capital One Home Loans and how we can help you get home, visit Capital One or call them at 855-900-8886.

I was selected for this opportunity as a member of Clever Girls and the content and opinions expressed here are all my own.