Considering purchasing a home? While we are nowhere near the bottom of the market that we saw just in the last couple of years, we’re not at the peak either. Now is a great time to consider buying since rates are still relatively low and prices are low as well. Most of the foreclosures and short sales are slowly being removed from the market, so finding a bargain-basement deal is a little bit more difficult, but not impossible. Regardless of what type of home in which you are interested, a home loan may be in your future. If you’re not sure where to start, here some tips on financing a property or real estate in the Columbus area.
Start off by knowing your personal finances and credit history.
Get a copy of your credit report, or have a good Mortgage Institution get a copy, from one of the three major credit reporting agencies, Equifax, Trans Union, or Experian. Carefully go over your credit history and check for any errors or fraudulent activity. Pay off any late bills or try to clear them off of your report by writing a letter of explanation.
Know how much money you have and what your net worth is.
Take into account any funds you may have in mutual funds or stocks, IRAs or savings accounts, liquid funds in checking or any other assets you may have. All this will play a factor in how much home you can afford. Consider your budget and what monthly payment you think might be in your comfort zone, for a mortgage payment. Remember, your mortgage payment amount should also include taxes and insurance, not simply your principal and interest payment.
Sit down with the lender and go over all of your finances and get a pre-approval letter.
This preapproval letter will be submitted to sellers when presenting an offer showing you’ve already done the necessary financial homework to purchase property. Offers are usually accepted much easier when the seller knows that the buyers are already preapproved and qualified.
Plan your monthly budget so that you’re prepared for homeownership.
If this is the first time you’ve ever purchased a home you need to know that your monthly expenses will now include utilities, water and trash, sewer and any city utilities, plus a reserve account for any repairs or emergency funds. You need to be prepared in case you need a new roof, furnace or water heater, windows or any electrical or plumbing repairs.
Start your road to homeownership right by knowing your finances, speaking with the lender and having funds available in case of emergency. I have a Mortgage Company and Loan Officer on my team that I recommend to my clients when they don’t have a business relationship with one. If you’re ready to get started looking at Columbus area homes, call me today or browse all the current MLS listings for FREE on my website.
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