June 1, 2021
With low interest rates and limited inventory, Seattle’s housing market remains as competitive as ever. So how do first-time buyers gain an advantage? By qualifying with a lender for a home loan. Boosting your credit score is a great place to start. Paying down credit card balance and making payments on time can up your score. Also consider lowering your debt-to-income ratio by ensuring monthly debts are less than 36% of your income. Reducing or paying off balances, eliminating new spending, or refinancing auto and other installment loans can help. Finally, show lenders you’re serious—and ease your own monthly mortgage amount—by saving up a down payment of 20%. As they say, opportunity favors the prepared—especially in a tight housing market.
To learn more, tune in to Money Matters weekdays at 5:50 pm on STAR 101.5 or visit WSECU.org/moneymatters.
Federally insured by NCUA.