Advice And Tips For Home Buyers
Advice And Tips For Home Buyers is important, especially for first time home buyers. There are many reasons why home buyers need to purchase a home. Maybe the home a homeowner currently lives in no longer suits them. Maybe the main breadwinner of the household needs to move due to job relocation or need to move due to personal family reasons. Or many renters are ready to become first time home buyers and buy their very first home. A home purchase is unlike any other purchase a consumer makes or will make. A home purchase is most people’s single largest investment in their lifetime and careful thought needs to go into the home buying due diligence process. Advice And Tips For Home Buyers are offered by many real estate industry professionals and veteran home owners.
Advice And Tips For Home Buyers: Where To Start
The majority of home buyers, including first time home buyers, search for homes online. The world wide web is full of advice and tips for home buyers and include thousands of home listings. Home buyers can start shopping for homes in the comfort of their homes. Home buyers can search for style of homes, what the market values are in certain areas, research property taxes, learn the amenities in the surrounding neighboring areas of the home they are shopping, the crime rate, and the proximity of public transportation as well as the proximity to shopping and expressways. Real Estate websites like Zillow and Trulia includes countless of home listings along with colorful photos of the subject property. You can search for mortgage blogs and mortgage websites where there are mortgage calculators where you can enter the price of the home, the down payment, the interest rate, the property tax information, and the insurance information and the mortgage calculator will give you the exact figure of your new housing payment. One of the main concerns home buyers need to think about is not what mortgage loan amount they qualify for but how much house they can afford. Websites like Zillow and Trulia will also list real estate agents and mortgage loan originators who advertise on their website. Another great tool with Zillow and Trulia is that they list consumer reviews on real estate companies, real estate agents, mortgage companies, and mortgage loan originators by the public. You will encounter good reviews as well as poor reviews.
Advice And Tips For Home Buyers: Qualifying For Mortgage
You can shop for as many homes as you like and pick your dream home in the right area but without being qualified for a home loan, nothing will become reality. Once you have made the decision that you want to purchase a home, the next step is to make sure that you qualify for a home loan and choosing the right mortgage lender to get you pre-approved. Before you go out on a search for a mortgage lender, you need to do a self analysis of your own financial and credit profile. If you have credit scores of over 800 FICO, make great income with little or no debt, did not have any bankruptcies nor foreclosures in the past, then you can go almost anywhere for a mortgage. However, if you have less than perfect credit, outstanding collection accounts, recent late payments, and lower credit scores, you may need a mortgage lender that has no mortgage lender overlays or a mortgage lender that specializes in home loans with bad credit . There are many mortgage loan officers, like myself, who specialize in Home Loan With Under 600 Credit Scores . Borrowers with credit issues may try not to go to banks because banks have higher lending requirements and many mortgage lender overlays that a mortgage banker may not. Mortgage lender overlays are higher lending standards than the minimum federal mortgage lending guidelines. For example, to qualify for a 3.5% down payment home purchase FHA Loan, FHA only requires credit scores of 580 FICO but most banks have mortgage lender overlays on credit scores where they will not accept any mortgage loan applicants without a minimum of 640 credit scores. This is called a mortgage lender overlays on credit scores.
Advice And Tips For Home Buyers On Credit
Common advice and tips for home buyers include that they try to maximize their credit scores prior to applying for a home loan. Credit Scores is one of the most important factors when qualifying for a home loan and impacts mortgage rates. Mortgage lenders look at borrowers with lower credit scores as higher risk borrowers and the mortgage rates will be higher for those with lower credit scores. There are a few quick fixes in optimizing credit scores such as paying down your credit cards to a 20% or less credit balance. A maxed out credit card will definitely lower your credit scores. Here is how mortgage lenders as well as other creditors judge consumer’s credit ratings:
Excellent Credit: 781-850 FICO
Good Credit: 661-780 FICO
Fair Credit: 601-660 FICO
Poor Credit: 501-600 FICO
Bad credit: Below 500 FICO
Here are advice and tips for home purchase when it comes to maintaining the highest credit scores possible during the home mortgage process:
- No major purchases on any high ticket items such as buying a new vehicle or buying new furniture.
- No new credit and avoid applying for any credit because hard credit inquiries will definitely drop your credit scores.
- Do Not Close Out Existing Credit Accounts: Closing active credit accounts will eliminate an established credit tradeline and will cause your credit scores to drop and weaken your credit profile.
- Job stability is a compensating factor and proves that you are stable and the likelihood of continued income is promising. Do not change jobs either prior to the mortgage loan process or during the mortgage process.
- Do not have any overdrafts in your bank account. Most mortgage lenders will not approve someone who had any overdrafts in their bank statements in the past 12 months. Do not make any irregular deposits without getting it sourced or documented and do not juggle money around from one bank account to another.