If you have been thinking about buying a home in Lafayette or elsewhere, you probably wonder about what it takes to get there. Here are some questions to answer that will help you get started in your quest to home ownership.
- Are you secure in your employment and do you have a track record? Lenders will want to not only see your current income, they will also ask for copies of your tax returns for the past two years. You will have to show that your income has been stable for a couple of years .
- Do you have a good credit score and credit history? Your score is important when you are considering buying a home. The higher the score, the lower the interest rate you will have to pay. A higher credit score can save you hundreds of dollars every month. Lenders will also look at your credit history: how long you've had accounts open, any late payments, etc. You can look at your credit report once a year for free by going to freecreditreport.com. To look at your credit score costs a little but if you are just starting the process, it may be worth it.
- Do you have money in savings? Yes, it costs money to buy a home. Even if you can obtain 100% financing, there will be closing costs involved. Closing costs include lender's origination charges and document preparation, attorney fees, appraisal fees, inspection fees, etc. You may be able to ask the seller to cover some of these fees but likely not all. If you do not have any cash, start saving today!
And as always, if you have any questions about the home buying or home selling process, feel free to contact me. I'm always just a couple of clicks away!
Originally Posted at: Lafayette Real Estate News