Four Steps Before you Search for Your New Home
- Good Credit (or cash) Since your home loan will likely be your single largest debt, the best way to get the lowest rates and most favorable terms is to maintain your lines of credit, reduce debt, don't open new lines of consumer credit and (bonus tip; don't quit your job unless your new job is in the same industry for better pay, but a 2+ year job history is preferred).
- Save for a Down Payment. The more you put down the lower your loan. VA loans are 0% down (but doesn't always work in competitive markets). 20% down is ideal, but there are loan programs with as little as 3.5% down like FHA.
- Increase Your Savings. You'll need closing costs funds (typically equal to 2%-3% of your purchase price) and it shows lenders you're not living check to check. The recommended minimum is 5% of the purchase price in savings for closing costs, moving costs, repairs and improvements you want to do before you move in, etc.
- WANTS & NEEDS Lists: what do you want, what do you need from your home? Features, amenities, distance to work, schools, golf course community, beach properties, etc. TIP: if you and your spouse are buying, each make a list and compare notes. "Hello!" reality check!
Call me with your questions and less discuss your plans and the market you plan to buy in, I'll share the facts and help you make a plan and I can introduce you to a great lender like Jason E. Gordon of Amerifirst Financial!
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