Before you buy a home, perhaps one of the largest purchases in your lifetime, there are a few things that you can do to prepare yourself for the events that take place during this purchase transaction.
1. Check your credit reports at http://www.freecreditreport.com/ . Before I began my career in real estate, I spent years as a bank lender. I would tell my clients to check their credit at least every six months for their own protection. You should do the same. This not only helps you spot identity theft, but this also gives you a head start on correcting any mistakes that the bureaus may have reported. Read through the reports and make sure that everything is correct before you apply for a mortgage.
2. Know your FICO score. The above website with only give you the content on your reports. You also want to know the numbered score that lenders use to rank your credit. Go to http://www.myfico.com/ for details.
3. Get pre-approved by a reputable lender. There are so many mortgage brokers and lenders out there. Any good REALTOR should have a list of brokers or lenders that they can refer to. Be careful- talk with the loan officers first before giving them permission to pull your credit. Ask them about their loan programs (rates are not everything!), the application process, and how they would address any credit concerns you might have.
4. Use the pre-approved limit given to you from the loan-officer as just one parameter for your purchase. Just because you are pre-approved for a certain amount, does not mean that you have to buy a house for that price. Let me explain. You probably know how many bedrooms and bathrooms you need to search for. You probably even know what school district to search in. However in your search, don't forget to include dues, maintenance fees, etc occuring monthly that would increase your payment. Each neighborhood and house could differ widely on this issue.
5. Trust your agent to send you updated searches and to work with you to narrow your parameters. Each house you view will reveal likes and dislikes that you may not have thought of before. Use these showings to your advantage and chart the pros and cons of each property. You may be surprised by what you find!
For more buying tips, visit my website at http://www.renaemeyer.com/.
Renae Meyer, Redefining the Cost for Full-Service Realty
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