The first-step in beginning a successful search for a new house is taking a hard, objective look at finances. Determining how much money you can dedicate to the purchase of your new house affects almost every aspect of buying a new home.  Here are some tips to keep in mind:

Credit Scores COUNT!  I know this may sound weird, but there was a time where your credit score did not impact your financing.  FHA loans were not even based on credit scores.  Now, most FHA financing requires a minimum 620 score.  The better your score the better rate and terms you will receive. 

You need a Down Payment - If you don't have at least 3.5% for a down payment, then you need to start saving before buying.  You can get 100% financing with a VA loan and some conventional loans.  However, the interest rate on a 100% conventional loan is going to be higher to compensate for the down payment.  In addition to a down payment, you need some "rainy day" reserves for maintanence and life's ups and downs.  Click here for tips for accumulating a down payment. 

Organize your Records - Now more than ever, you are going to have to document your income and expenses when applying for a mortgage.  Check out our mortgage checklist. 

Eliminate Debt - No more than 28% of your gross income can be applied to your mortgage, real estate taxes and insurance. And no more than 36% of your gross income can be applied to your mortgage expenses plus your regular debt expenses (car payments, credit cards, other loans, etc.).

Call a Professional - There are people out there to help you including me.  Give me a call for a financial check up so that you can take advantage of this awesome opportunity to buy. 

Scott Eaves, Associate Broker
Let's talk Real Estate!
www.scottsellsatlanta.com
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(404) 920-3439 - FAX

Chapman Hall Realtors (404) 236-0043