- Clean Up That Credit
Anybody can give you a car; anybody can give you a cellphone or even a credit card. But not anybody can give you a house. You see, one has to have a certain credit score and a certain debt-to-income ratio to qualify for the mortgages available today.
- Explore Your Mortgage Options
It’s good to see your loan officer but it’s also best to do your own research. This way, you will have an idea of what’s available to you. If you’re a veteran, you definitely want to take advantage of your Veteran’s Affairs programs. If you have little to no cash downpayment, maybe you can qualify for some sort of FHA program or some type of subsidy program. If you have A-credit and tons of resources, maybe you want to go the traditional way with 20% down conventional financing which is what sellers love to see.
- Get Yourself Pre-approved
This is the time when you call your bank or your lender and let them know that you’re interested in getting pre-approved for a new home purchase. This is when a loan officer will see you and ask you for a couple of documents – tax returns, paystubs, bank statements and of course they would want to run your credit to make sure that you meet all the necessary requirements. You have to know what you’re working with and what you can get for it.
- Understand All The Costs
Purchasing a home entails a number of costs. It’s not just your downpayment. There’s so much more to consider like your upfront taxes, upfront private mortgage insurance, possible escrow fees, title fees, recording fees and more. Make sure that your lender provides you with a breakdown of the entire cost of the home purchase.
- Choose Carefully Between Interest Rate and Loan Origination Points
Loan officer will tell you that he can give you the best interest rate but will charge you a little bit more on the closing cost upfront fees to get the loan done or he can reduce the amount of closing costs you have to pay and give you a slightly higher interest rate. So the choice is up to you, but you definitely have to informed. Think about long term versus short term goals.
- Get Professional Real Estate Help
A professional real estate agent will help you search for properties that meet your criteria, make sure that you negotiate a good, solid deal and make sure you’re protected all throughout the process.
- Know And Prioritize Your Needs In A Home
You have to consider that you may not get all that you want in a home unless money is no object. You have to find the balance between your wants and needs but make sure you have the necessities because you may be living there for a long time.
- Commit To The Community
Although the time frame may be different for some but most people move every 5 to 7 years. Make sure you’re okay with the community and make sure you can commit there and build your life and your family’s life.
- Understand The Entire Offer Process.
A lot of times people can get overwhelmed with this part of the process. A real estate process can take a long time so better understanding of all the steps will definitely help you.
- Don’t Get Distracted With The Small STuff
A lot of times when you see a home you want, you tend to notice little cosmetic tings like changing the tiles, house colors and other cosmetic things. Remember to be open to change and not be negative. Look at the over-all structure and see if you have everything you need to build on what your dream home should be.
If you are planning to sell your home, let The Incorvaia Team make the process as easy as possible for you. Call us today!