Here is at least part of what you need to know and do to get prepared for buying your home.
Do this at first and before you begin house hunting. Contact a lender or experienced mortgage broker and get a letter of loan prequalfication.
Fill out lender's requested paperwork for preapproval that will determine how much home you can afford to purchase. This preparation will increase your bargaining position with the sellers. Getting preapproved sets you apart and signals to the agents and the seller that you are dedicated and serious and that you can afford the home you want.
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- Make sure you are financially qualified for this purchase.
- Be prepared to make the payments as outlined by lender and mortgage broker.
- Avoid any major purchases until after closing, regardless of your current credit history.
- Stay away from increase in debt-to-income ratio that reduces your purchasing power.
- Preserve any cash reserves you have.
- Protect your cash cushion of approximately three times amount of your monthly payment.
- Review your credit reports at the major credit bureaus (Equifax, Experian and TransUnion) and look for problems or irregularities.
- Avoid consolidating bills and closing credit cards, which could diminish your cumulative credit history and lower your FICO score.
- Don't change jobs. Lenders like it when you have been working at least two years for your current employer.
Be prepared with documents to support your financial situation and proposed loan.
You will be asked to provide the last three months of deposit account statements for bank accounts, stock or mutual fund accounts, pensions and other retirement accounts such as a 401(k) or IRAg. Other important documents will be income tax returns and W-2 forms for the last two years and. Also legal documents involved divorce and dissolution of marriage. And if you have been renting, you will need documentation to show at least 12 months of rent paid.
Think about and list those things about a house and home that are important for you and your family.
This would include such things as type of home, whether it will be condo or SFR detached, and number of rooms, design of home, density of neighborhood, price of homes, location, and proximity to schools. And think about how long you want to reside in the home.
Find a REALTOR who is local and experienced with properties in your area.
This REALTOR will be a member of the National Association of REALTORS and be guided by the principles set forth in its Code of Ethics.
Visit with this REALTOR or group about the things that are most important for you. Ask the REALTOR questions about how they work and approach the buying experience. Think about and ask for service you want.
Develop a sense of understanding and trust with your REALTOR who must know what you expect and want.
Your REALTOR will be supporting and promoting your position ... and protecting your interest ... during the buying process.
Best wishes to you for the successful home buying experience.
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Harrison K. Long, Explore Group, Coldwell Banker Previews, Irvine, CA.
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