Experts emphasise that prospective homebuyers can improve their chances of securing a mortgage on favourable terms by starting preparations early, including credit checks, savings, and exploring assistance programmes, even in a competitive and costly market.
Buying a home remains difficult for many would-be purchasers as prices stay elevated, borrowing costs remain high and competition is still fierce. But Matt Vernon, head of consumer lending at Bank of America, says buyers who prepare early can improve their chances of finding a home and securing a mortgage on workable terms.
Vernon said the process should begin with education: buyers need to understand the mortgage process, the type of home they want, the area they hope to live in and the school systems that matter to them. The Consumer Financial Protection Bureau says a good first step is to work out how much to spend by factoring in not just the down payment but also monthly costs such as property taxes, insurance and homeowners association fees.
Credit is another major part of the picture. Vernon said a strong score helps lenders assess risk and can affect the interest rate a borrower receives, which in turn influences affordability. The CFPB advises buyers to review their credit reports, check for errors and gather the paperwork needed before applying for a mortgage.
Savings also matter well beyond closing day. Vernon said buyers should aim to have money left over after the purchase so they have a cushion for repairs or other surprises. That aligns with guidance from credit unions and the CFPB, which both stress the importance of emergency savings and realistic budgeting before taking on a mortgage.
Vernon also pointed to help that many buyers overlook, including down payment assistance, grants, help with closing costs and low-down-payment loan programmes. Bank of America says it offers homeownership resources, training and online tools aimed at helping buyers build financial readiness, while the CFPB provides budgeting checklists and planning tools for those preparing to shop for a mortgage.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
