Denver Estate Real
Whether it is your first home or you consider yourself an old pro at home buying the recent economic downturn caused the guidelines for obtaining a home mortgage much more stringent than before. So if you are thinking about buying a home, you will save yourself a lot of headache and heartache if you follow these 5 steps.
Denver Estate Real
Establish Credit
Denver Estate Real
If you are a prospective first time homebuyer your first job may be to establish credit. No lender is going to finance your home purchase until you can prove or show a history of borrowing and paying back on time. A good way to get started is with a credit card. It is possible to pay many of your monthly expenses with a credit card with no fees involved if you pay the entire balance off at the end of the month. If you have had credit cards make sure that your payments are made on time.
Denver Estate Real
Face The Past
Now is the time to clean up any past credit problems. Find out if there are any unpaid bills that need to be paid. Lenders evaluate your credit history so if you spend too much on a regular basis and have been slow to pay, the odds of getting a mortgage these days are mighty slim.
How To Clear Up Credit Problems
You can improve your credit score by first getting a copy of your credit report. If your score is not in the high 700s or higher, then rethink your budget, lower your expenses, possibly consolidate your bills and make sure that you start immediately to make your payments on time. In fact, pay more than the minimum amount on your credit card so that credit companies do not see you as Just Hanging On
Evaluate What You Can Afford
In the long run, what with tax breaks and appreciation, buying a home can be less expensive than renting but that does not mean that it is less expensive in the short run. When it is your home, a problem with a leaky roof is your problem, not the responsibility of the landlord. In addition to paying the principle and interest, you must also budget for taxes and in many areas for homeowner association dues as well. Also, if you have been living in a condo or an apartment and plan to move to a home with a yard, you will have to figure in the cost of landscape management.
Evaluate The Market
When you have a general idea of what you are looking for, it is easy to hop online to find out the projected cost for buying it. Sometimes you may have to settle for less than you originally planned but you can get a real good idea of the market before you actually go out to see any properties in person. For example, a search for Evergreen CO Real estate shows over 300 3 bedroom, 2 bath homes currently on the market. Prices range from a high of million to a low of 9,000. Find the price range you are looking for an study the homes online.
Get The Right Mortgage
Talk with reputable lenders and get yourself pre-qualified and pre-approved for a loan amount. This gives you and the seller the confidence that when you put in an offer on a home you can afford that the lender will approve the loan assuming that the property also qualified or appraises for the selling price.
Happy Hunting
Armed with pre-approval from you lender, you can shop for homes in your price range with every confidence of success.
