Ready to buy a home? Here are the best moves for you to make as you begin to enter the housing market.
#1 Clean Up Your Financial House
Check your credit report. I am happy to take a look at your credit report for you at no charge. (Click here for a free pre-qualification) You can also go to AnnualCreditReport.com for a free credit report. To boost your credit score, pay down credit cards to below 30% of the limit, and avoid being late! Check errors too. The best rates are awarded for credit scores in the mid 700’s and above. Do not be discouraged if your scores in in the 600s! There are affordable alternatives for you!
Start saving for a bigger down payment. A 20% down payment eliminates the private mortgage insurance requirement. Don’t have anywhere near that? Not to worry, FHA has programs that let you put just 3.5% down. There are even a couple of zero down payment programs too.
#2 Get Pre-approved
This means that your lender has checked your credit and verified your income and assets. This step can be combined with the step above. I often get applicants that need a little bit of quick and easy credit repair. I am able to guide them on exactly what steps to take in order to qualify for the best loan deal.
#3 Find a True Advocate
A good buyer’s agent can be a tremendous help to you! I urge all of my clients to find a good advocate that will help negotiate a price. Experienced agents can also spot deficiencies in the property, know to ask about such things as POA dues and property taxes, and provide a multitude of other services that the novice can miss.
If you have further questions, or would like to discuss the home-buying process in more detail, please give me a call – 501.229.7145 – I would love to hear from you!