Buying your first home
is one of the biggest financial steps a person can take. It's also one of the
most rewarding. Most of the work comes down to three things. Your credit score.
Your prequalification. Your down payment.
1. Check your credit score
Your credit score is the first thing a lender looks at. It affects whether you qualify for a mortgage and the rate you'll pay if you do.
Pull your report well before you start shopping. You're entitled to a free one from each of the three major bureaus at annualcreditreport.com. Look for errors, old accounts that should be closed, and small balances you can pay down.
Improvements in the months before an application can meaningfully change the rate you're offered.
If your score isn't
where you want it, the time to address it is now. Red River Bank's free RRB
University seminars cover credit repair in plain language, and our lending
specialists are available for one-on-one conversations.
2. Get prequalified before you shop
Prequalification is the step that turns a homebuyer into a serious one. It's written confirmation from a lender that you can borrow up to a specific amount. It matters for three reasons. It tells you what you can afford. It signals to sellers and agents that your offer is real. And in a competitive market, it can be the difference between an offer that gets considered and one that doesn't.
Your Red River Bank
mortgage lender reviews your income, debts, savings, and credit, and provides a
letter you can hand to an agent the same week. Because lending decisions are
made locally, the process moves faster than it does with most online lenders.
3. Plan your down payment
Down payment is often the biggest hurdle for first-time homebuyers, and the most misunderstood. The traditional 20% is no longer the only option, and in many cases, it isn't the best one.
For many conventional loans, qualified buyers can put down as little as 3 to 5 percent. FHA loans allow as little as 3.5 percent. In Louisiana, several programs exist to help first-time homebuyers cover down payment and closing costs.
Red River Bank participates in a number of them. As a member of the Federal Home Loan Bank of Dallas, we offer access to the HELP grant program. Our team also helps clients evaluate Louisiana Housing Corporation programs and other state and parish-specific options.
If a down payment is
the only thing standing between you and a home, talk to us before you assume
you have to wait.
A simple next step
The first move should not be an offer or a house tour; it should be a conversation. Sit down with a Red River Bank mortgage lender and we'll walk you through your credit, your prequalification, your down payment, and the Louisiana programs that might apply.
All loans subject to
credit and property approval. Terms and conditions apply. Programs, rates, and
assistance availability are subject to change. Equal Housing Lender. Member
FDIC.
