Want To Buy A Home? Do These Things First
While finding and buying a home can be exciting, it's definitely not always easy and can cause you to experience some stress. Although this is especially true for the first-time homebuyer, even a seasoned veteran of real estate can have difficulty with the entire process. To lessen the difficulty, it's a good idea to consider following some of these helpful tips.
Before you head out and start looking at houses, your financial picture needs to be looking its best. This can start many months or even a year before you look for a house. Take a look at a current credit report and make sure there are no errors on it. If there are, fix them as quickly as possible as these can reduce your credit score unfairly. You really want to shoot for a credit score above 700, although it isn't impossible to buy a home with a lower score. However, you tend to get a better loan with a lower interest rate if you have a strong credit score. Also, don't change jobs or open up a new credit card account in the months prior to buying a home. You want to paint a picture of responsibility, and frugal behavior is key.
You also need to determine your budget. Talk with a lender and discuss your financial situation and get pre-approved for a loan. These days, lenders are fairly conservative about pre-approval, so you are less likely to be talked into a situation that you really cannot handle. Just to be safe, it is recommended that your mortgage payment not exceed more than 30% of your income. Many lenders won't even approve a loan if your mortgage payment will be higher than this percentage.
It is also good to think about what type of mortgage you wish to have, as these carry different rates of interest and terms. Some loans have fixed rates of interest, others have variable rates and still others are a combination of both. The fixed-rate mortgages are good options if you plan on staying in the home for many years. A variable-rate loan might have a very low rate of interest initially but can adjust year to year and definitely can adjust higher when interest rates go up. A hybrid of these two would be a loan that is fixed for three to five years and then it starts to vary. The variable loans can be a good option for those who don't plan on living in the home for a long time, as you can get a lower rate and pay less each month.
Before you begin searching for a home, write down a comprehensive list of what you want in your new home. Think about everything from location to the number of bathrooms and bedrooms you need, as well as the size of the yard and amenities. While you can't always get everything you want, prioritize your list so that the really important things are at the top.
If you are searching for Livermore real estate, San Ramon real estate, Pleasanton real estate or perhaps another area in Alameda or Contra Costa County, you will need to find a real estate company that specializes in properties in these areas, such as 1stInSite.com. They can help you buy or sell a home, as well as purchasing investment properties and commercial properties.
Before you head out and start looking at houses, your financial picture needs to be looking its best. This can start many months or even a year before you look for a house. Take a look at a current credit report and make sure there are no errors on it. If there are, fix them as quickly as possible as these can reduce your credit score unfairly. You really want to shoot for a credit score above 700, although it isn't impossible to buy a home with a lower score. However, you tend to get a better loan with a lower interest rate if you have a strong credit score. Also, don't change jobs or open up a new credit card account in the months prior to buying a home. You want to paint a picture of responsibility, and frugal behavior is key.
You also need to determine your budget. Talk with a lender and discuss your financial situation and get pre-approved for a loan. These days, lenders are fairly conservative about pre-approval, so you are less likely to be talked into a situation that you really cannot handle. Just to be safe, it is recommended that your mortgage payment not exceed more than 30% of your income. Many lenders won't even approve a loan if your mortgage payment will be higher than this percentage.
It is also good to think about what type of mortgage you wish to have, as these carry different rates of interest and terms. Some loans have fixed rates of interest, others have variable rates and still others are a combination of both. The fixed-rate mortgages are good options if you plan on staying in the home for many years. A variable-rate loan might have a very low rate of interest initially but can adjust year to year and definitely can adjust higher when interest rates go up. A hybrid of these two would be a loan that is fixed for three to five years and then it starts to vary. The variable loans can be a good option for those who don't plan on living in the home for a long time, as you can get a lower rate and pay less each month.
Before you begin searching for a home, write down a comprehensive list of what you want in your new home. Think about everything from location to the number of bathrooms and bedrooms you need, as well as the size of the yard and amenities. While you can't always get everything you want, prioritize your list so that the really important things are at the top.
If you are searching for Livermore real estate, San Ramon real estate, Pleasanton real estate or perhaps another area in Alameda or Contra Costa County, you will need to find a real estate company that specializes in properties in these areas, such as 1stInSite.com. They can help you buy or sell a home, as well as purchasing investment properties and commercial properties.
About the Author:
Madeleine Glazier loves writing about the real estate industry. If you are looking for Livermore real estate agents, or to find Pleasanton CA real estate agents, please go to the 1stInsite.com site today.
posted by Vittoria @ January 09, 2014
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home