Homebuyers - Before You Buy; You Definitely Should.......!

Wouldn’t it be amazing if we could simply write a check for the purchase of a new home? Should we all be that lucky!!!

The reality is that most of us have to get our homes financed by obtaining a mortgage loan. 

Getting approved for a mortgage loan, at times, can be stressful and time consuming.

Here are 5 things to do once you’ve made the decision to purchase a home.

1. Determine the approximate value of home you will need. 

Family size will determine the number or rooms; lifestyle will determine location and amenities and financial constraints will determine how luxurious of a home you will want. Using resources like Zillow and Trulia can be useful in determining the approximate value of a home at this point. Click here to search properties in Atlanta! Simple register and have access to all listings - just like an agent :) An abso
lute figure is not very useful here, but a range like $300K-$380K or $120 - $150 would allow some flexibility with certain variables.

2. Look at your credit reports (all 3 ideally as reports tend to vary significantly from one agency to the next). There are many website and services that will provide you a free credit report. Butbuying a one-time report is relatively inexpensive and it will tell you if you have any credit complications that may hinder you from getting approved for a mortgage loan. Clear up any outstanding collections, late payments orpublic notices. If you have the financial resources, hire a credit management firm to clear up your report and improve your scores and changes of getting your loan application approved. In general a good credit score is 680 and above, but there are special programs and mortgage companies that will approve mortgage loans to people having credit scores as low as 580. Obviously the higher you can get your scores the better. This should be done at least 6 months before you are thinking of making the purchase, it can take time to get your credit cleaned up, should you have an inconsistencies or issues.

3. Learn as much as you can about the different loans available to you. The most common are conventional loans, FHA loans, and VA loans. Each having their pros and cons, do your due diligence to determine which is the best for you based on your unique credit and financial situation. FHA and other loan programs allow for 3.5% down and some programs even allow for 1%. Saving for a home can take several years, but at least you have a plan and are working towards making home ownership a reality. This is a good time to talk to a loan specialist; they can review your financial situation and guide you on what type of loan you might be able to be approved for and how much down payment you will need.

4.Consider the down payment, one of the biggest obstacles to getting approved, or purchasing a home is the down payment amounts. Conventional loans usually require a 20% down payment, but the amount could be higher or lower based on your unique credit and financial situation. FHA and other loan programs allow for 3.5% down and some programs even allow for 1%. Saving for a home can take several years, but at least you have a plan and are working towards making home ownership a reality. This is a good time to talk to a loan specialist; they can review your financial situation and guide you on what type of loan you might be able to be approved for and how much down payment you will need.

5. Before you start seriously looking for a home, it is a great idea to get pre-approved or pre-qualified. Most sellers require that buyers supply a pre-approval letter with any offer. Getting pre-approved, suggest that you are a serious buyer; it also means that you can quickly submit an offer when you locate your dream home.

Happy Home Shopping!!