A little bit of homework when you are looking to purchase a home will go along way in easing your concerns about the process. Most potential buyers find the thought of a hefty mortgage to be a bit overwhelming. Being prepared in advance will help relieve those concerns. Here are some steps you can take that will help you make the best decisions for your needs.
- Things to consider when deciding how much you can
spend on your home
As a rule of thumb, you can purchase a home 2 to 3 times your annual gross income. Every home owner has more expenses to cover: property taxes, insurance, maintenance, utilities, any costs routinely incurred such as medical care, child care, etc. - Create a list of wants, needs and desires in your
home
Be realistic with them. If you need handicap access this would be a must. Updated kitchen or hardwood floors, a desire. This list can help your Agent zero in on the property for you. - Start saving
In today's climate, lenders are requiring a larger share as down payment on homes. This can be as high as 30% in some cases. Check with your local and state government for possible assistance for first time home buyers. - Get your credit in order
Lenders rely on your credit report and credit score to determine whether, how much, and at what interest rate to lend for a home. Most require a minimum credit score of 620 for a home mortgage.
You are entitled to annual free copies of your credit reports from the major credit bureaus. Order and then verify that each one is accurate, and try to correct any errors before you buy. The easiest way to improve your credit score is to pay every bill on time and pay down high credit card debt. - Get prequalified Meet with a lender. Gather the documentation they request such as tax returns, bank statements, etc. The lender will determine the amount you qualify for and give you a letter stating indicating you have prequalified.
Call 877-563-2170 for a FREE Consultation! 