Tuesday, July 31, 2012

5 Must Haves When Buying A Home

  1. Increase your savings:  Home buyers should save enough money for six months of mortgage payments and at least a 3.5 percent of the purchase price for a down payment and closing costs. Buyers shouldn’t forget about moving and possible home repair costs too in setting up a savings plan for a home purchase.
  2. Have your credit in shape:  Home buyers should know their FICO score and know how it can impact the mortgage rate they get. Borrowers with credit scores of at least 700 tend to get the best mortgage rates.
  3. Know what you can afford:  Home buyers should get pre-qualified for a mortgage so they know how much they can afford, what types of loans they can qualify for, and set a comfortable monthly mortgage payment goal.
  4. Avoid making other major purchases:  Big-ticket purchases, like a car, should be put off until after they buy a home. Potential buyers should be working to keep their cash reserves high and prove to lenders they can take on mortgage debt.
  5. Consult a real estate professional:  Long before you are ready to buy, seek out and interview up to three real estate professionals who can prepare you to face the market by addressing questions, setting realistic expectations and providing valuable insight and expertise to the complex process of home purchasing.

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