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The Top 8 "to do's" when you are thinking of buying a house

By
Real Estate Agent with Results Support Services

Here is a "thumbnail sketch" of 8 really important things to do when you are even THINKING about purchasing a home for the first time. You want and need to know this!

  1. Pay all of your bills on time in the last 12 months or more, if not on time, no more than 1 or 2 - 30 day "lates" in a 12 month period. It is possible to have dinged credit and still get a mortgage, but you may pay a little more in interest! Another thing to consider...if you are having issues just keeping up on your bills, that might be a good sign to wait until you have them under control.
  2. Have at least 3 good "trade" lines of credit - They include car loans, credit cards (secured or unsecured) , Gas Cards, Department Store Cards, Cell Phones. Many people with no debt in this form are often shocked you really need "debt" to build credit. The credit scoring formula requires that you have some debt and pay it month to month to show that you are responsible.
  3. Set up a savings account, and make it your initial goal to save 5% of your purchase price. It can be done with less of course, but when you start saving you start prioritizing the way you live! The more you can put down on the house, the lower your interest rate and mortgage insurance.
  4. Be cautious of having unexplained "non-regular" deposits in your checking or savings accounts, as it will look like an informal loan has taken place and most underwriters may need an explanation letter about each one.
  5. Analyze a realistic payment zone for you before you meet with a lender. Such as 20-25% of your gross monthly income, and put some budget numbers on it, so you can know if it works for you in the REAL world, not the on paper world, as some lenders will want to qualify you for the highest possible mortgage, and history has shown the industry that much of the time that the allure of the bigger home can intoxicate, even the most conservative buyers. & You don't want to be strapping yourself down with too much mortgage debt, which is really un-needed stress!
  6. Talk to at least 2 local mortgage lenders as their rates and fees can vary, but tell them what you are doing. It is most likely not a secret, but be direct and that honesty will help you build trust with them.
  7. It's a good idea to start looking at the different types of houses that will be the best fit for you. For example: Townhomes will most likely have a association fee but in return, they do provide some type of service (Example: yard maintenance).
  8. Ask people you trust, who they would hire as a Realtor or Mortgage person, a personal referral is powerful and it sets the tone of the entire relationship, as they want to make sure that they live up to the reputation that proceeds them.
Show All Comments Sort:
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Tria Moua,  That is very good advice for anyone wanting to buy a house.

Sep 24, 2015 08:05 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

One needs to have credit for at least 2 years. Some professionals do not have credit history that long but can demonstrate they have done that kind of work for ....

Sep 24, 2015 08:34 AM
Gary Coles (Coaching)
Venture Realty International - Las Vegas, NV
Latin America Real Estate

Tria,  These are some great tips.  And welcome to ActiveRain and congratulations on your first post! I am looking forward to reading more. 

Sep 24, 2015 09:47 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Great tips, Tria Moua . Congratulations on your first blog!

Sep 24, 2015 09:59 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

And, welcome to Active Rain, Tria Moua .  Keep blogging.  I think you'll find it very beneficial for you and your target audience.  

Sep 24, 2015 10:00 AM
Diane Jones
Limitless Real Estate - Queen Creek, AZ
Selling and Buying SUNsational Arizona Homes

great information!  

Sep 24, 2015 10:23 AM
Captain Wayne - Rowlett Real Estate School
Rowlett Real Estate School - Panama City, FL
Rowlett Real Estate School / Owner and Instructor

Hi Tria,  thanks for the great tips!  They will come in handy!

 

Sep 24, 2015 11:03 AM
Captain Wayne - Rowlett Real Estate School
Rowlett Real Estate School - Panama City, FL
Rowlett Real Estate School / Owner and Instructor

Welcome to ActiveRain, it's great to have you aboard.  I look forward to reading more of your blogs in the future.

Sep 24, 2015 11:04 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Welcome to ActiveRain and thanks for sharing. These are definitely things to do when thinking of buying a home. Preparation is key to a smooth process.

Sep 24, 2015 09:01 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty

Tria Moua Welcome to Active Rain!  As someone who has been here (on and off) for close to 9 years, it's well worth it!

Sep 24, 2015 11:43 PM
Mery Fernandez Empire Network Realty Luxury Brokerage
Empire Network Realty INC. - Orlando, FL
The Rise of An Empire, Let's Build Yours!

Hi Tria!! Welcome to the world of Activerain, may your blogging  create a whole new chapter in your Real Estate Career.

Sep 24, 2015 11:59 PM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Welcome to Active Rain and blogging.  I love that tip number 88...personal referrals are the best!

Sep 25, 2015 03:29 AM
Stefan Winter
Real Estate in IL & NV | Owner of Real Estate Web Tech | Daily Vlogger - Las Vegas, NV
Owner - Winter Group & Real Estate Web Tech

Welcome to ActiveRain, great list of things to start doing when you plan on puchasing a house soon.

Have a great weekend!

Sep 25, 2015 07:23 AM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Good morning Tria and welcome to Active Rain! Congratulations on publishing your first blog post! Great list.

Sep 25, 2015 11:08 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Great advice Tria! Something that every buyer should read.

Welcome to Active Rain, looking forward to reading many more of your posts, let me know if there is anything that I can do to help as you get started here.
Bob

Sep 26, 2015 11:54 AM
Gilbert Real Estate Experts: Colby & Michele Myers
Flat Fee Etc. Real Estate - Gilbert, AZ

So true, some really good advice here.  Thanks for sharing.  And welcome to ActiveRain!

Oct 08, 2015 09:07 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Tria - You've provided lots of great suggestions to potential home buyers to consider.

Oct 12, 2015 02:47 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Tria - Welcome to the ActiveRain community, and congrats on your first post here.

Oct 12, 2015 02:47 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Please know that the ambassadors, those with orange badges, are here to help and answer questions.

Oct 12, 2015 02:47 PM