Pre-Qualification: Meet with a mortgage broker or lender and find out how much of a home payment you can afford. Try to contact someone in the area you are going to be moving to. This helps with knowing the person you will be dealing with and handling of the paperwork. Professional Representation: Consider hiring a Real Estate Agent who is helping guide you through the buying process.
Get Pre-Approved: This is also done with the mortgage broker or lender. You actually apply for a home loan and get a commitment from the lender. Sellers are often a lot more receptive to buyers who have been pre-approved. The seller knows you are serious and that you can afford to buy the home. It will also save you time and keep you from being frustrated when you are searching for homes in your price range.
Make a List: Have two lists, the first list are your must haves like how many bedrooms, square footage, garage spaces, or one story or two story, etc, The second is your wish list, like a pool, bonus room, or deck. These are things like are not necessary, but you would still like to have them. Be careful not to over analyze this. You do not want to pass up homes that you really like because it doesn’t meet everything on the lists. In addition, also think about the deal breakers, these are things that would absolutely keep you from buying the home.
Be Organized: When looking at potential homes have a camera and notepad so you can take good notes on how the home matches up with your wish list. Ask yourself questions like does the home have enough space, does it provide enough lighting, is it close enough to shopping, dining out, and schools and other places you want to be close to?
Today there is a variety of mortgages for buyers to choose from. Each Mortgage option has its own guidelines and underwriting Try to investigate all of them to see which mortgage option best meet your needs. The more options you have the more money you could save.
I really recommend working with a local lender in your area. The lender has a face and can get to know you personally. There is a vast amount of paperwork when purchasing a home and it can be frustrating. The lender can help explain the guidelines and paperwork. He or she can also help you narrow down which mortgage option is best for you. Working with someone you have a connection with is so much better than being just another number over the internet.
Start a Go-To File A Go-To File should contain all of your important financial documents. Regardless of the loan type, lenders will need information about you. Make copies of financial statements; bank accounts, investments, credit cards, auto loans, recent pay stubs and two years’ tax returns.
Check Your Credit Rating Credit scores range between 400 and 800. 620 + is considered "good". 680 + is considered "premium" and may possibly help get you a lower interest rate. Below you will find the contact information for the 3 major credit reporting agencies to help you determine your credit rating. Ask your lender how to improve your credit score if you need to. Going forward, treat your credit like gold.
Be Proactive Now is not a good time to change careers, move your money around, or buy big ticket items. Lenders like stability. So if you are considering any major changes, it pays to meet with a lender and ask them how to proceed before you make any changes! Also, remember DO NOT CANCEL any credit cards, this can lower your credit scores.
