Tips For Potential Home Buyers

While seeing interest rates at an all time low can make you want to go out and buy a house as soon as you can, there are some tips we want to give you before making such a big decision!

TIPS

1. Hows your credit?

Mortgage lenders like to see a good credit history. Its unrealistic to think that majority of the people don't have debt, but its how you handle your debt. If you keep making a dent in your debts and manage your expenses well it shows lenders that you can handle taking on another payment. We even advise people if they have the means to pay more than the monthly payment. Paying a little more each month can go a long way. 

2. Save for your down-payment!

While many lenders prefer at least 20% down its not firm. You can bring as little as 4% up to as much as you have. Our advice to you is that the more the better. If you want to build your equity in a reasonable amount of time put some cash away. THE MORE THE BETTER. It can never hurt to have more money. 

3. Get Pre-Approved

Getting pre approved sets up a realistic budget for you. You don't want to look at homes out of your range and get your heart stuck on something you are unable to afford. Go get pre approved, know how much you are qualified to borrow, and only look at houses you can afford. You are saving yourself the disappointment when you fall in love with a home that costs more than 3 times your gross annual income.

4. Closing Costs
While you do need a good amount for the down-payment you ALSO need money for closing costs. Many people don't realize this key part of buying a home. While you can shop for lower closing cost rates, some are fixed. Always remember "cash to close". 

5.Thinking ahead

Many home buyers think that when trying to buy a house the only thing that matters is saving that money for the down payment. The thing they tend to forget is the costs that come with that house. Taxes, insurance, home ownership fees, and maintenance fees. You want to save up at least 3-6 months of living expenses before purchasing your home. People who don't think about these hidden costs tend to break the bank because they drain their account with buying the home.You don't want to start off your home ownership in debt. 

Think big picture when buying a home. Don't let the excitement take over. SAVE.