One of the most significant, and perhaps scariest, investments you will ever make in life is purchasing a new home. Though exciting, you may find yourself asking, “Where do I even begin?”—a question that most people consider when looking at buying a home. Lucky for you, Yolo Federal Credit Union has got the tips, tricks, and resources to help you through this process.

Save for a Down Payment

Great ways to save include dedicating a Secondary Savings Account for your down payment and making monthly transfers into it. You may also want to start saving early and over time. In addition to a Secondary Savings Account, putting some cash into a Share Certificate for an extended period will allow it to grow while you continue to set money aside for your down payment. Contact a Real Estate representative for more tips on how to save and for information on down payment assistance programs.

Look at Your Debts

What loans do you currently have? Did you co-sign for a friend or relative who needed help getting a new car? Anything that has your name listed as a signer is considered an obligation and could affect your debt-to-income (DTI) ratio even if you aren’t the one making the payments. Work on refinancing any co-signed loans from your name to help lower your DTI ratio. Stay up to date on all existing loans since late payments could impact your credit score. You will also want to avoid making any large purchases or maxing out a Credit Card if you can. New lines of credit could influence your credit score; however, life is unpredictable, and sometimes, you can’t help it if your car breaks down or an emergency pops up. A Yolo Federal representative can help you budget for life’s un-expectancies.

Get Pre-Approved

There is a large demand in the housing market. If you plan on playing the market and waiting for prices to drop, you will face stiff competition from homebuyers. A serious offer with financing pre-arranged could give you that competitive edge over all other potential buyers. With your pre-approval, you will receive a letter, which you should have ready to go when you begin seriously looking for your dream home.

Whether you’re ready to purchase or want some guidance, Yolo Federal has all the resources you’ll need! Our personalized service and competitive rates have made us Yolo County’s #1 Best Credit Union. For more information on how to take your first steps into homeownership, visit our Real Estate page or schedule an appointment with a representative today.