Are you ready to buy a home this year? It’s time to get moving!
Laying the foundation by taking the steps to prepare will ensure a seamless transition from just dreaming about it to actually being ready to buy a home.
Speak with a lender. Call or email your Realtor and ask who she recommends, Realtors work with many different lenders and will likely know who will be the best fit for your situation. A lender will talk with you about your income, debt, and credit situations and will be able to give you a price range of the homes in which you should be looking, and also tell you approximately what your monthly payment will be, including taxes. Don’t be shy, you are not obligated to anything at all. If you are not ready to speak with a lender, you can check your own credit first by following the steps below.
Make sure your credit is good and if it isn’t – fix it by paying on time and disputing any erroneous information. Every person is entitled to one free credit report annually from all three credit reporting agencies;
Save money for downpayment and closing costs. If you are applying for a conventional mortgage and put down 20% or more of the purchase price, you won’t have PMI (private mortgage insurance). There are other types of financing such as an FHA loan which only requires 3.5% down payment but very likely has a slightly higher interest rate than conventional loans. VA loans are available to those who have served and do not require private mortgage insurance like FHA and less than 20% conventional loans. Closing costs are approximately 3% of the purchase price. Learn more about types of loans and the requirements of loans below.
Your Realtor can help you with a offer strategy if you need to ask the seller for a credit at closing to ensure you have the funds needed for closing costs. Asking for closing costs may work in the right circumstances.
Contact your Realtor. If you don’t have one, get a referral or look on line, most home and agent searches now start at the computer or smart phone. You can research what Realtors service the area in which you would like to live. Read the reviews, pick up the phone and talk with a real estate agent to make certain the agent seems to know what they are talking about and you have a comfort level with her. Use a professional, not someone that sells 2 or 3 houses a year, but an agent that is working hard and is a career professional, and is up to date on the area and has a great track record. http://www.zillow.com/profile/Tracy-Tkac/ Ask your agent to set up an automatic email of home listings so every morning you will be emailed new home listings and not miss anything when you are ready to buy a home.
You will be ready to buy a home- chose the one that makes you happy!