Avoid the Alligators! Tread Carefully through the loan swamp!
There are basics to everything that if done in the right order, make what you are trying to accomplish go smoother. This is true of buying a home also. If you have never gone through the process of acquiring a loan to purchase a home or if you've not gone through this process recently, the following list will be of benefit to you:
•1. Your Credit Score Determines Your Loan Options - Your credit score will determine types of loans and interest rates that are available to you. Get a copy of your credit report and make sure that it's accurate. If there are inaccuracies, get it corrected. If your credit report is accurate but your score is less than desirable, it's not something that you can change overnight. Get started right away with better habits, pay those bills on time, do not use every available credit account open to you. Conservation of resources is where you want to be if you want to borrow money to buy a home. It takes seven years to remove your bad credit from your credit record.
•2. Have Resources:
(a) For a Down Payment - If you can pay at least 20% down on your home, you can avoid Private Mortgage Insurance. There may be a 100% financing loan option for you based upon your situation, credit score, etc., but even if it is available to you, your home is going to cost you more when you go that route. Sometimes there are reasons for going with a home loan of over 80%, but bear in mind that your home does end up costing more.
(b) For Closing Costs - Ask your loan officer for an estimate of closing costs if they do not provide one for you automatically. The amount needed can vary from lender to lender. So if you talk to at least 3 or 4 lenders about loans, get an estimate of closing fees from each one that you talk to. Make sure that each lender covers all of the fees that you will be expected to pay. Surprises on closing day are not fun and can put an end to your home purchase.
•3. Have Financial Papers Ready - Employment proof, tax returns, W-2s, Bank Statements, Other Income Proof if you want it to be considered. Even a history of paying your utility bills if you do not have other credit history can be helpful. Have these documents ready for your loan officer. This will help him help you.
•4. Find the Right Lender - Ask friends that have recently purchased a home. Ask your Real Estate Expert who they recommend. Check where you bank at. Ask your co-workers who have recently purchased a home.
•5. Take Your Pre-Approval Letter and Go Find the Right Home! - When you're satisfied that you've found the right lender with the right mortgage for you, go find the right Real Estate Broker and then find the right home.
For all your real estate needs in the area from Idabel, Oklahoma westward to Hugo, Oklahoma, call Judi Barrett at Integrity Real Estate Services. Our name says it all. Visit with me about lenders that have done a good job for my clients! 580-212-5946 or email me at judi@integrity-realestate.net
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