5 Home Buying Fundamentals to Remember

I know when we were buying our house last year, the financial part of the process was intimidating and even confusing at times. There was a lot of information to take in at once, especially in the area of borrowing money and home loans. I thought I would share with you the 5 things we found to be most important to consider in this process in the hopes it will help you too.

1. Keep your finances stable. When looking for a home it is important to avoid making major changes to your financial situation. If you are looking to buy a house don’t then buy a car or change your job in that same time period. Banks and loan companies want to see financial stability in future home owners.

2. Pay off your debt. The amount of debt you carry affects your ability to take on additional debt in the form of a house loan. Breakdown what you owe and work to lower it as much as possible between now and when you plan on buying a home. The less debt you have, the better chance you will be approved to buy that house.

3. Check your credit score. Always make sure to pay your bills on time to keep a good credit score. A person’s payment history is one of the biggest items that effect credit score. If you find errors on your report, get them corrected. The better you can make yourself look to the loan companies, the greater your chance of approval.

4. Know the different loan types. Getting a mortgage is not a one size fits all process. There are different types of mortgages such as fixed rate, adjustable rate, and hybrid. Discuss with the loan company or bank which options might work best for you and your individual situation.

5. Get pre-approved. This was one of the first things we did when we started the house hunting and buying adventure. It really helps save time and headaches. Once you are pre-approved, you will be able to narrow your search and target homes you can actually afford. Plus, it can even effect whether your offer gets accepted by a seller. If a seller sees that you are pre-approved, they tend to accept your offer because they feel more confident that the purchase will go through.

Remember this:  the financial picture you paint is crucial to you success at buying and owning  a home.

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