Well the first one seems to obvious but it starts here. The decision to buy a home.
There are many reasons to buy a home, the two most common.
Investment (read Homeownership As A Savings Plan).
Security Knowing you have a place that is yours and can be passed down.
Once you have made a decision to buy a home, usually (especially first time buyers) people start looking at houses and start dreaming. Which is OK as long as you don't get your expectations higher than your ability. It is difficult to have seen homes and visualized yourself living there and then have to scale it down. That is why it is so important to get to the money part first.
There are two ways to buy Real Estate, One with Cash, two other peoples Cash or the bank. So if you do not have a couple hundred thousand stashed under the mattress then you need to talk to other people Da bank.
Banks, Mortgage Brokers, Credit Unions... when getting qualified as a buyer (Da banks call you a borrower) they look at a few things. All there digging, prodding, turn your head and cough is to determine the likelihood of you will paying them back. Let's look at some of the things they look at. Da bank qualifies two things in a home purchase, the borrower and the property.
First the borrower
1. Credit-How well do you pay your obligations
a. Typically it Is based on credit bureau rating system known as a FICO Score Except FHA. They like to see at least a 620, 690 is real good 720 and above is great.
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