Simple Advice For Buying A HOme
There are some very simple things you should pay attention to and rules to follow as you prepare to buy a home. It will make getting a mortgage easier to help you buy a home, and they will give you more options to financing when you want to buy a home.
The first and should be the most obvious rule would be to pay your bills on time. This is the best and easiest way to boost your credit score. And as we all know the better your credit score the better your options to finding a solid loan.
The next step you should think about when you want to buy a home is what are your loan options? Again, the better your credit score the better you loan options. Keep in mind however, you don't have to have perfect credit. Even though you might get the best interest rate, buying a home still might be a better investment then paying rent. So research your options.
Watch Your Purchases When Buying A Home!
Another important thing to keep in mind when buying a home is to avoid big purchases. You want to throw off your debt to income ratio. Get your mortage first when you buy a home, and then, after that make your big purchases. That includes appliances for the house! Wait until after settlement to make those purchases on credit.
Keep at least 3 lines of credit open, but all paid up. Lenders want to see that you can balance multiple payments and keep everything up to date. Could be 3 credit cards with small or zero balances. Or a car loan, student loan, etc...
You can buy a home with as little a $0 dollars down, however on the norm these days is about 3.5 % down. However, if you can save more than that for a downpayment, it will be easier to get the mortgage (loan) for your home.
Save Money When Buying A HOme!
Talk to your lender about credit card usage when you are thinking of buying a home. I have had some lenders tell me that people should stop checking their credit score 6 months before the home purchase and stop using the credit cards 2 months before you buy a home. Not all lenders agree. So make sure you are on the same page with your lender.
At Maryland Real Estate Professionals, we have several excellent lenders that we work with. If you need help with finding an excellent lender so you can buy a home, let us know and we can connect you with the lenders so you can talk to them.
At Maryland Real Estate Professionals (MDREPros) we have helped hundreds of home sellers and home buyers with their most valuable negoiations, their homes. We look forward to earning your trust as well.
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Have a wonderful week.