In 2013, the typical home buyer searched for 5 weeks and viewed 18 homes.
Before you start looking for a new home, it's crucial that you shore up and evaluate your finances. This provides a strong foundation for your search and helps to keep you realistic about your options.
Save. Strengthen your credit score. Get approved. Get ready, get set.
Save!
However you decide to finance your home, it's good to start with a healthy account balance. Not just for down payment (which many experts agree should be around 20%), but also to protect you in the event of unforeseen problems or repairs. Plus, a homeowner with a few months of mortgage set aside is a much better loan candidate.
Strengthen your Credit Score
Since the real estate bubble burst, lenders have tightened their requirements when it comes to credit. The basics are still the same, though - the HIGHER the score, the LOWER the down payment and monthly payments will be. To bolster your numbers, settle any outstanding debts and refrain from applying for new cards several months prior to buying. Avoid closing accounts, too, and making large purchases until after closing. Ask me for more info!
Get Approved!
Once you have done your financial prep, it's time to get professional blessing. Unlike pre-qualification, which is more superficial, pre-approval takes all of your financial information into account (including credit report) and gives you a clear measure of the mortgage amount you will qualify for. Getting pre-approved from a lender will save you grief.
Get Ready
Finding the right home can take months, but buying happens all at once, so you need to have your financial obligations tied up. If you haven't put your current home on the market, we will need to talk to meet logistics and get the details worked out. If you are a renter, consider a month-to-month agreement to get comfortable with the idea of leaving.
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