Your down payment of 20% is in the bank for that million-dollar home you want to buy in Palos Verdes. Congratulations, but there is still work to be done before you start shopping:
Know the Score: If you're not already familiar with your credit score, find out what your number is. If it's below 700 spend a few months pumping it upward. If necessary, there are professionals who can help you clean it up.
They've Got Your Number: One of the first things a lender will do when you apply for a loan is run your credit score. That's why you know what it is and have taken the steps to send it skyward.
Low is Better than High: Credit card balances are best kept on the low side in the months before you plan to purchase a home. Running a high balance will impact your credit score and your ability to secure a home loan.
Wait for New Wheels: Monthly installment payments impact your credit score, so postpone adding a new car (or other major purchase) in the months before you plan to buy a home.
Show Me the Money: In addition to the down payment, you'll need at least three months of living expenses tucked away--maybe more.
Keep the Job You Have: The months before a move is not the time to change jobs. Banks are looking for some stability and recent job-hopping makes them a little jittery.
Two Homes Equal Two Payments: It takes a truckload of cash to carry two homes for an indefinite period of time. The banks do not want to take back your home; they already have enough real estate on their books from past mistakes. More than likely, they'll give you the soft rejection, by asking you to come back when you have more cash or have sold your current house.
My advice is to sell the first one before you buy the next one. You may have to rent until your dream home comes on the market, but straddling two homes can be a very uncomfortable and expensive experience. Not to mention cause for many a sleepless night. Make life a little easier on your nerves. Sell first, and sleep well.
More Buyer's Tips from Norma!
Norma Toering
RE/MAX Palos Verdes Realty
310-493-8333
Subscribe via ActiveRain
Subscribe via Email
Norma on Facebook Norma on Twitter
Palos Verdes Lifestyle Blog Toering and Team REMAX Palos Verdes
Palos Verdes Horse Homes for Sale Blog - View Homes for Sale in Palos Verdes CA Blog -
Rancho Palos Verdes Property Market Reports - Relocating to Rancho Palos Verdes -
Needles CA Colorado River RV Park and Motel - Coachella Valley Horse Polo Land and Lots
Sell Smart, Buy Wise and Live Well
Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800
PalosVerdesLifestyle- Nominated by Relocation.com as one of the top ten Los Angeles area real estate blogs. Chosen by MovingCost.com as one of the best Los Angeles realty blogs. Awarded 5 out of 5 stars by Lender411 blog review. Ranked by Technorati in the top 1% of all blogs. As seen in the Daily Breeze newspaper.
South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach. Based on information from the Association of REALTORS®/Multiple Listing as of the initial date of this article/blog publication and /or other sources. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
Find Norma on: Facebook - Twitter - LinkedIn - Email Norma
Palos Verdes Homes Blog - Palos Verdes Houses
Palos Verdes Horse Property - Palos Verdes Realtor Agent
Colorado River CA Land - View Homes Palos Verdes
Palos Verdes Coastal Homes - Rolling Hills Estates Home Search
Photos of Palos Verdes - Palos Verdes Videos
Palos Verdes Luxury Homes - Beach Cities Homes
;)
;)
;)
