If you’re planning on purchasing your new home with a loan, here’s some tips on what you need to know Before you shop for a home:
Learn Your Credit Score
You may not realize this but your credit score, or FICO, is an important number when it comes to determining the interest rate a lender will give you. The higher you score the better, so if you can improve it before buying, do so!
Know what you can afford by finding a trusted lender
Ask them to help you identify how much you can afford. Once that’s known, they’ll give you a Pre-Approval letter that can be submitted with an offer. If you need a trusted lender, contact John Ussery from Alpine Mortgage to see if he’s a good fit for your needs.
You’ll need cash to buy and close
You should save enough to cover at least 3.5 percent of the purchase price for the down payment, and again for closing costs.
Avoid making major purchases.
“Two weeks after we made an offer on a home, my husband came home and announced he bought a car”. Don’t do this! Avoid making big purchases and keep your cash on hand as high as you can to show the lender you have what it takes to make those house payments.
And Lastly…. Consult a real estate professional!