How Much Can You Afford When You Buy in Seeley Lake?

In the wake of the latest economic crisis that has hit the housing market hard, banks are tightening lending practices, and those looking to buy a home are now having to be prepared.  When you’re looking to buy a home in the Seeley Lake area, do your homework and be sure to follow these tips to get on a healthy financial path to home ownership.

Get Preapproved.  Preapproval is a necessary part of the home buying process that helps save you time and money, and it is done by your bank, ideally before you start your house hunting in earnest.  Getting preapproved for a loan helps you to determine the price range you can afford and enables sellers to take your offer much more seriously.
Choose a lender or mortgage company wisely.  Before you have a signed contract to purchase a home, you must first choose a lender.  When you apply for a loan, you’ll be providing all of your financial information, including your employment, assets, and liabilities (including recurring debts like car payments, other loan payments, or credit cards).  The bank will also issue you a Good Faith Estimate (GFE) that will estimate certain costs you may encounter in the home buying process.
Stay away from borrowing the down payment without disclosing the loan, submitting fake letters of credit or gift lenders, or making secret financial arrangements.
Be accurate.  Be sure you list your income and assets correctly, as well as all the debts and amounts that you owe.  Your credit report will be examined by your lender, and they will be given information about your bill payment history, whether you’ve ever been sued or filed for bankruptcy, among other details.  You are entitled to a summary containing the sources of the credit report information and you have the right to dispute any inaccuracies.

With historically low interest rates, and federal tax incentives for first time and repeat buyers, now is a great time to buy a home in Seeley Lake!  If you’re ready to start your search, call me, Kim Koppen.  I’m ready to serve as your Seeley Lake real estate expert!  Also, visit my Great Bear Properties website for more tips for homebuyers!