subject: Crucial Tips To Know Before Buying A Home [print this page] Are you tired of paying rent every month with nothing to show for it? Home ownership proves many benefits, including: The Satisfaction of Owning Your Property, Possible Tax Deductions, No More Landlord, and Earning Equity! Owning your first home can be both exciting and a bit nerve wrecking! It seems that the first step to buying a house is Making The Decision To Buy! Grab a piece of paper and write down all the reasons you want to buy a house. Determine how long you want to live in the new house. Does buying still make food financial sense? Can you afford a house that will meet your list of requirements? A rule of thumb is your Mortgage payment should not exceed one third of your net monthly income. Are you planning on having children? Are you thinking of starting your own business? Talk about neighborhoods, schools, and economic factors liable to affect the value of a home. Also, remember that owning a home can be very time consuming. It seems like something always needs to be fixed, repaired or painted. So make sure you have the time and the money to put into your home or your investment wont appreciate as much as you would like it to.
When buying a home it is highly recommended that you be pre-approved before you begin the search. Being pre-approved will inform you of your maximum affordable home and save you from looking at properties out of your price range.
So, where do you even start? A good place to start is to contact a loan officer or your bank and have them take an application on you. It is also good to work with someone youll trust because this is one of the biggest investments you will ever make. Also for comparison you may want to check two or three different banks and lenders.
It will help if you can get pre qualified for a mortgage . A pre qualification is a verbal statement saying that you are qualified for a specific amount. Your loan officer can write a letter which you can give to your real estate agent. Your real estate agent can then use this letter when negotiating a deal.
Here are the items that lenders will look for when getting you pre-qualified:
Two years of credit history
Three to four trade lines on credit report
Pay your bills and keep credit history clean
Two Year Job History
Assets
Two Months Worth of Savings
Debt to income ratio will determine your pre-qualified loan amount
Additional Documentation: Two years W-2s, last 2 pay stubs and 2 months of bank statements.
Your credit score will determine your interest rate, length of loan and choice of programs and if you will qualify for 100% financing.
Once you are pre-qualified, Begin Your HUNT!! Happy House Hunting!
