Buyers, planning to buy a home, prepare your self with this information.
10 Steps to prepare for Homeownership.
- Decide how much home you can afford. Generally, you can afford a home equal in vlue to between two and three times your gross income.
- Develop a wish list of what kind of home you like to have. Then priortize the features on your list.
- Select the area you like to live. Consider schools, recreational facilities, area expansion plans, and safety.
- Determine if you have enough saved to cover your down payment and closing cost. Closing cost, including taxes, attorney's fee, and transfer fees average between 2 and 7 percent of the home price.
- Get your credit in order.
- Determine how large a mortgage you can qualify for.
- Organize all the documentation a lender will need to pre approve you for a loan.
- Explore different loans options and decide what's best for you.
- Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
- CAL ME, I can help you through the process.
Just a gift of knowledge how the credit scoring model works.....
The 5 DO'S for credit users.
- Check every 2-3 months online (does not effect score)
- Pay bills on time and even early. Paying early gives extra credit.
- Keep balances on revolving debt under 30%
- Use active credit cards at least once a month
- Get past due accounts current and keep current.
The 5 DON'TS for credit users.
- Don't close any open accounts.
- Don't go over balance limit's this is a double hit.
- Don't reply to pre approval marketing. By signing your authorizing them to pull your credit.
- Don't consolidate credit cards, Keep 30% rule.
- Don't pay off judgments/collections during the process of applying for the loan.