Most of my clients and blog followers have heard this before, but for the sake of anyone new, I have to repeat my “HomeBuyer Prep” tips. Even if you have purchased before, it is always good to update yourself on the buying process.
First: do your homework. When you know what you want, you’ll have an easier time finding it. Be sure to call me if you have already done this. That way, while you GET READY to BE READY, I too can be doing my behind the scenes preparations.
Get prequalified for a mortgage if you are planning on financing a home. Even if you purchased two years ago, you might not have noted that the interest rates have gone up a bit, and you may not recall that your salary might have improved since then. OR you might have begun paying for college for a student or purchased a new automobile, both which can drastically affect your purchasing power.
It pays to know! Get a copy of your credit report and check the score. If you see any errors, now is the time to make those inquiries and have them removed so they do not affect your ability to get the loan you seek.
Avoid making any large purchases especially if you are short on cash. Purchasing a home takes more than just good credit. There are closing costs and earnest money deposits. Sometimes, to improve your purchase power, having revolving credit paid down or OFF is really a game changer. So don’t go buy a new car with a five year payment plan. Be in the position, if needed, to pay something down or off to help your credit scores.
This is just the beginning. If you are unsure who to work with on the mortgage preparations, please call me. Shopping around for a lender is great, as long as you shop with good ones. Making the mistake of working with a poor lender can cause the end of the transaction to be very unsavory, and possibly cost you the home of your dreams. Call me for suggestions, I have several of them from which to choose. Trusted advisors are key. Of course, you may always bring me your lender, and we can work with anyone you trust, but I will be interviewing them to be sure they actually appear to know their business. Would you expect anything less from me? Likely not!