DJ Hassan’s Financially Fit Interview: KeyBank’s Top Tips for Applying for a Mortgage

Shopping for a new home is one of the biggest (and most exciting) investments most of us make. It can be a little nerve-wracking, too, so I sat down with Ethan, the branch manager of the Chippewa branch, to get some mortgage tips.

Here's our whole interview:

So, to recap, there are three really important things to remember:

1) Before you start touring homes, you'll want to get prequalified for a mortgage. It's not a formal commitment that a bank will finance you, but a bank will take a quick look at your finances and provide an initial estimate of how big of a mortgage you might qualify for. That way, you won't go looking at homes you can't afford and if you do decide to put in an offer, your offer will carry that much more weight.

2) Manage your credit score. Be sure to request copies of your credit report to make sure there are no errors on it. Avoid taking out any new loans or credit cards (or co-signing on a new loan) for about 3-6 months before you start house-hunting. And definitely make at least the minimum payments on your bills each month and if you can, work on paying down balances.

3) Save for a downpayment. You definitely want to have money in your savings account for a downpayment, plus a little bit more for unexpected expenses. You know how it is — once you close on a house, you might have a surprise car repair or discover that your new home needs a new refrigerator after all. If you have extra money in the bank, none of that will cause any undue stress.

Excited about house hunting? Learn more about KeyBank's mortgage offerings online here or give them a call at 888-KEY-0018. If you're in the neighborhood, you can stop by my friend Ethan's branch at 250 Delaware Avenue (Suite 120), Buffalo, NY 14202.