Although some consider owning your own home to be an essential component of the so-called American Dream, too often there is a risk of it turning into a nightmare. After more than 15 years, as a licensed seller of real estate in the state of New York, I constantly advise my clients and/or clients to proceed with their, eyes wide openand ensuring that they do nothing, to hurt themselves, by making any kind of mistake (be it, of, omission or commission)! Therefore, before you begin your search, it makes sense to consider many variables, especially 5 specific ones, which I will try to discuss. With that in mind, this article will attempt, briefly, to consider, examine, review, and discuss these.
1. Check the credit report, and monitor and repair it, regularly, from the beginning and throughout the transaction process: Some believe that they simply need a high credit score, rather than understanding that there is often more involved, in terms of getting approved, for a home loan and/or mortgage. Before, beginning, one Search for houseSmart, potential and qualified buyers, start by reviewing your Credit Report, to repair it and correct any errors or inconsistencies. This can be done on your own and/or by consulting a professional in that area! Also, keep checking back, constantly, throughout the entire transaction period!
two. Pay off the debt, but don’t close the accounts: A few months before you start, find out, it is wise to pay off your debt, as much as possible, but avoid closing any accounts. The reason you want them to stay open is the credit bureaus, your debt factor, available credit, ratio, looking for one, which is less than 30% or preferably even lower! Also, non-housing debts, relative to monthly income, must fall within specific ranges.
3. Avoid any new debt: Avoid any new debt, even when it looks appealing! For example, avoid the temptation to accept any store credit/charge in order to receive some kind of immediate savings/benefit.
Four. Pay all bills on time: Lenders take credit history very seriously! Pay all monthly bills, on time, and in the minimum payment amounts listed above!
5. Talk to a quality, recommended mortgage professional: Some seem to choose their mortgage broker/banker efficiently based on the rates offered. It’s important to realize that while a rate is important, choosing someone who will pre-approve you, recommend the best options, and lend a helping hand throughout the process makes the transaction period much less stressful.
Proceeding wisely when choosing to buy a home makes the process much easier. Will you become a smarter shopper?