Tips for Improving Your Homebuying Power in Troy, Michigan

Purchasing your dream home may be the most significant milestone you want to reach in Troy. It’s a huge step where you must find home loan options in Troy and save money for a down payment. A good credit score can boost your chances of qualifying for the best mortgage rates, and a big down payment can decrease your monthly mortgage payments. 

With inflation decreasing the number of things you can purchase, increasing your purchase power can be handy when you want to buy a home. Here are four tips you can follow to increase your homebuying power.

Increase Your Down Payment

Lower your high mortgage rates by putting more money down. By doing this, you’ll still have more manageable monthly mortgage payments. Keep in mind that while low down payment rates are attractive, your down payment will ultimately determine how much you can afford. 

Boost Your Credit Score

Having an exceptional credit score can put more homebuying power in your hands. Your payment history, length of credit history, credit mix, and more factor into your credit score. It might take weeks or even months to boost your credit score, but working on improving it now will pay off in the long run.

One of the ways to increase your credit score is by paying down credit card debts, especially ones with high-interest rates. You can also use unconventional methods to boost your credit score, such as adding your utility payments, cell phone bills, or even on-time rental payment history. 

Contact us, your preferred mortgage broker in Troy, Michigan, to learn how to boost your credit score before applying for a home loan. 

Look for First-time Homebuyer Programs

Several resources assist first-time homebuyers in finding a mortgage or help with down payments. You can check the U.S. Department of Housing and Urban Development for the list of resources for Michigan. 

Just because you’ve previously owned a house doesn’t automatically mean you can’t qualify for a program.

Some programs, like those from the Michigan State Housing Development Authority, offer loans for both first-time homebuyers and repeat buyers. You qualify as a first-time homebuyer if you haven't owned a home in the past three years. 

Be Realistic About Your Target Range

First of all, you must research houses and prices in Troy, Michigan. Look at properties that were recently sold and take note of trends in your desired neighborhood. If the homes were sold for amounts over the price list, you must change your target price to adapt.

Final Thoughts

Boosting your homebuying powers takes time and strategy. Prepare in advance so you’re in the best position to purchase your dream home by the time you find it.

Have questions? Contact consultants from Reliance Financial Group today. They can walk you through your loan options and help you get started.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.