If you are currently in the market for a home or know that you will be in the near future, then you need to read this article as we will go over Ways To Prepare For Home Buying to ensure an all around better experience. Doing some preparation now can only benefit you in the long run and getting your finances and credit in the proper shape is key to success in the home buying market!
One of the Ways To Prepare For Home Buying is to do whatever you can in order to get your credit score increased as much as possible. It is possible to purchase a home with lower credit scores as you can qualify for FHA loans with 580 credit scores and even as low as 500, but if you are looking for a conventional loan then it is in your best interest to get the highest credit score possible. Any score under 740 will have the interest rate get incrementally larger with every decrease in 20 points from 740. If you know that your credit isn’t up to standards, it is a good idea to see what is driving your credit score down. There are many items that can be affecting you from delinquent accounts, bankruptcy, foreclosure, too much available credit used, etc. It would be wise to get your debt paid off or down as much as possible or at least to under 30% usage. Also, the more time that elapses from your derogatory items, the better. Always remember if you went through bankruptcy, you will have to wait at least 2 years from your discharge date in order to get your loan approved.
If you are looking to purchase a home in the near future, another of the Ways To Prepare For Home Buying is to work with a professional loan officer like myself (888-900-1020,www.loanconsultants.org) and get an in-depth pre-approval completed. Here at Loan Consultants we don’t take the easy way out and perform an extensive look into your history in order to give you a pre-approval that will ensure your loan gets approved 98% of the time! Doing a lot of the work upfront such as verifying income, credit score, down payment funds, etc puts us in a great place once you get under contract to purchase a home.
Another of the Ways To Prepare For Home Buying is to get yourself hooked up with a quality realtor who knows the area in which you are interested in and can be a great negotiator for you. If you are armed with a good realtor, they should know the market value of homes so that you don’t get stuck paying more than you should. You have to realize that you will be spending a lot of time with your realtor during the home buying process and it is good to have an open relationship with communication so that both parties know what the others want.
If you are buying a home the final of the Ways To Prepare For Home Buying is to ensure you have a sufficient down payment in your possession as well as ample reserves and an emergency fund. First of all, you will need to show your down payment funds prior to getting your loan approval, so that is a must. On top of this, you are going to want to try and have 3 months of reserves put to the side which can cover your housing expenses in case of an emergency. Having a little extra cash on-hand never hurt anybody and can only benefit you!
If you are looking for professional guidance during this time, you need to reach out to me as I will be with you every step of the way from thinking you want to buy a home, all the way to closing on your home. No matter how long it takes, you will always have a friend in me. Please call me any time to get started at 888-900-1020, email me at email@example.com, or visit www.loanconsultants.org.