Welcome Readers! It is Monday again, we’ve survived the weekend, and now we have to survive the week! I spoke to a few new home buyers this weekend, and as my clients usually do… they are inspiring today’s article! I want to talk to you today about home loans. The majority of home buyers obtain a loan to purchase a home, but if you’ve never purchased a home, or if it has been awhile… you may need some information to get you started. I’ll list the basics from start to finish, and by the end of reading you’ll be ready to call a lender to get started!
- What is your credit score? If you’ve never checked it out for yourself… there is no time like the present. A website that I would recommend is www.creditkarma.com. This website is free, and you will get your credit report from 2/3 of the credit agencies. What is a good credit score? The scores between 740-850 will get you the very best rates on your home loan. Credit scores between 620-740, you will get marginal rates on a loan, and are still in a wonderful position to buy a home! If your scores are 620 or below, now is most likely not the right time for you to consider buying a home. If you fall between the 620 credit score, or below, and would like to know how you can raise that score contact me!
- Get a pre-approval – If you fall into the category of a credit score of 620+, now it is time to talk to a lender. I have contact information for many lenders that I work with, and could happily give you a couple of referrals for you to speak with. A common misconception about a pre-approval is that it will hurt your credit score. Please stop believing this! It is not true! A pre-approval from a lender is a tentative commitment that a lender gives a buyer based upon these common factors: Income, Debts, Assets, and Credit Scores. What does a pre-approval do for you as a buyer? It will tell you exactly what you can spend on a home, thus making it one of the most valuable steps when buying!
- Start looking for your new home! – As a Realtor, this happens to be my FAVORITE step! Now that you have steps 1 & 2 completed the fun part can begin! We can start looking at homes that best fit your family needs.
- Don’t make mistakes at the last minute!- As a Realtor, this happens to be my LEAST favorite step! More often than you may realize, buyers make these last minute mistakes while in the home buying process, and they ruin the entire transaction. Many lenders will need to recheck your employment status and credit right before you close on your new home. Do NOT under any circumstances do these three things: quit your job, take out any new loans (like an auto loan), or apply for any new lines of credit or credit cards. By doing any of those three things, you will likely be denied the home loan.
I hope that this article was short, sweet, and informative to you as a potential buyer. If you have any further questions, I am always open to answering any that you may have. It is my goal to give readers as much information as possible to make buying and selling real estate in Central Ohio a great experience, with me as your Realtor 🙂
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