subject: How To Shop For A Home [print this page] How To Shop For A Home How To Shop For A Home
Where Will You Get The Best Deal On A Loan?
Yes this process can seem daunting but a good Realtor should be able to help you through the process. It is tempting to simply compare interest rates Online but interest rates do not tell the whole story. There are fees and charges that may be added onto loans during the process so interest rates do not tell the whole story. In addition, your credit score will affect the interest rate. You should check out credit unions, big banks and mortgage brokers to make sure you get the whole picture.
How Much Home Can You Afford?
This is a matter of looking at your income and employment stability as well as your expenses. The easiest way to figure this is to use one of the many Home Affordability Calculators online. You enter your income, your monthly expenses, the amount you plan to put down on the property and the interest rate you expect to pay for your loan. The calculator spits out an amount that shows you how much home you can afford.
Will You Qualify?
Today's lenders are skittish and want to see a good credit score and job history. A good credit score is usually 700 or above. If you do not have such a good credit score, it is a good idea to clean up your credit before you shop for a loan. A good credit score may also be a factor in the interest rate you will be able to get.
Must Have And Definitely Do Not Want List
Items to consider for your "Must Have" list might include: school district, number of bedrooms, proximity to work and/or shopping. Also important to some buyers are whether the home is one or two story, proximity to a busy street and the composition of the neighborhood. A family with three children will probably be more comfortable in a neighborhood with families with children than in a neighborhood of mostly older adults. In addition, some homebuyers definitely want a home with a view while others do not care about this but want a pool or room to add one. Whatever your needs and preferences are, it is wise to state them and then identify those features that are "Must Have" and those that are simply "Nice to Have." For example, a family with a handicapped person who cannot manage stairs might be quite adamant about wanting only a one story home. In this case, there is no sense in even looking at two story homes. That would be a waste of time.
