YOUR ROAD MAP TO GETTING THE HOME YOU WANT...
Whether you are an experienced buyer or a 1st-time buyer, before you begin your home shopping, and especially if it's your first time, here's you need to know:
Mortgage Loans. Most homes are bought with mortgage loans. May we suggest you take some time to understand how to get mortgage financing before you begin your home shopping.
As the events of the last few years in the real estate industry show, people forget about the tremendous financial responsibility of purchasing a home.
Get pre-approved. By getting pre-approved as a buyer, you can save yourself the grief of looking at houses you can't afford. You can also put yourself in a better position to make a serious offer when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. By doing a thorough analysis of your actual spending power, you’ll be less likely to get in over your head.
Begin your pre-approval by gathering your tax returns, pay stubs, and other important documents for the past two years. That also includes cash in the bank, your credit history and current income, including investments and other assets.
Additional information to keep in mind:
- A credit score of at least 700.
- Credit card balances that are kept
- Work history and income.
- Banking history, an
- A down payment of at least 3% to 5%
Choose your mortgage carefully. What used to be the emphasis when it came to mortgages was on paying them off as soon as possible. Today, the debt the average person will accumulate due to credit cards, student loans, etc. means it’s better to opt for the 30-year mortgage instead of the 15-year. This way, you have a lower monthly payment, with the option of paying an additional principal when money is good. Additionally, when picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in the house for a long time—and given the current real estate market, you should—taking the points will save you money.
Understand your costs. To help you achieve your dream of homeownership you must understand the real estate contract before you sign it.
No-No's. Applying for and accepting new credit, buying a new car, transferring credit card balances, purchase of other large ticket items. All of this activity affects the credit score and responsibilities that could ultimately affect your pre-approval.
We will be happy to explain our process to you and help secure the right transaction for you from start-to-finish.
Let's Get Started... Contact us today!
