While finding and buying a home can be exciting, it's definitely not always easy and can cause you to experience some stress. Although this is especially true for the first-time homebuyer, even a seasoned veteran of real estate can have difficulty with the entire process. To lessen the difficulty, it's a good idea to consider following some of these helpful tips.
The first part of the process is to assess your overall financial picture. You need to run a credit report on yourself and take a good look at the score, as well as the items listed on the report. Sometimes there are problems that can be fixed, such as information that is incorrect. The cleaner your credit report, the better chance you have at getting a better loan. In addition, do not open any new credit card accounts during the six months or so prior to purchasing a new home, and don't take out any other unnecessary loans. The less you owe, the easier it is to get loan approval.
Of course, you also will want to figure out how much house you can afford. This is dependent on the amount of money you have saved for a down payment, as well as your monthly income and overall finances. Obtaining pre-approval for a loan is important as well, and lenders will look over your finances carefully to determine how large of a loan you will be able to handle. Often a lender will not approve you for a loan that requires you to designate more than 30 percent of your monthly income toward house payments.
It is also good to think about what type of mortgage you wish to have, as these carry different rates of interest and terms. Some loans have fixed rates of interest, others have variable rates and still others are a combination of both. The fixed-rate mortgages are good options if you plan on staying in the home for many years. A variable-rate loan might have a very low rate of interest initially but can adjust year to year and definitely can adjust higher when interest rates go up. A hybrid of these two would be a loan that is fixed for three to five years and then it starts to vary. The variable loans can be a good option for those who don't plan on living in the home for a long time, as you can get a lower rate and pay less each month.
In addition to your finances, you also need to think about the size, style and location of the home that you want to buy. Create a list that has several must-have features, as well as many things you would like to have. Perhaps your must-have items include a certain location, such as within a specific school district. Other must-haves might include a specific size range or number of bedrooms to accommodate the size of your family. If you are looking for the perfect house, keep in mind that this doesn't really exist, and while you can get a lot of what you want, sometimes you have to compromise.
If your real estate search includes looking for homes for sale in Livermore or Pleasanton or perhaps real estate in San Ramon or Dublin, contact a local real estate expert for help. The staff at 1stInSite.com, for instance, specializes in matching clients to the perfect home or commercial property in the East Bay area, including all parts of Alameda County or Contra Costa County.
The first part of the process is to assess your overall financial picture. You need to run a credit report on yourself and take a good look at the score, as well as the items listed on the report. Sometimes there are problems that can be fixed, such as information that is incorrect. The cleaner your credit report, the better chance you have at getting a better loan. In addition, do not open any new credit card accounts during the six months or so prior to purchasing a new home, and don't take out any other unnecessary loans. The less you owe, the easier it is to get loan approval.
Of course, you also will want to figure out how much house you can afford. This is dependent on the amount of money you have saved for a down payment, as well as your monthly income and overall finances. Obtaining pre-approval for a loan is important as well, and lenders will look over your finances carefully to determine how large of a loan you will be able to handle. Often a lender will not approve you for a loan that requires you to designate more than 30 percent of your monthly income toward house payments.
It is also good to think about what type of mortgage you wish to have, as these carry different rates of interest and terms. Some loans have fixed rates of interest, others have variable rates and still others are a combination of both. The fixed-rate mortgages are good options if you plan on staying in the home for many years. A variable-rate loan might have a very low rate of interest initially but can adjust year to year and definitely can adjust higher when interest rates go up. A hybrid of these two would be a loan that is fixed for three to five years and then it starts to vary. The variable loans can be a good option for those who don't plan on living in the home for a long time, as you can get a lower rate and pay less each month.
In addition to your finances, you also need to think about the size, style and location of the home that you want to buy. Create a list that has several must-have features, as well as many things you would like to have. Perhaps your must-have items include a certain location, such as within a specific school district. Other must-haves might include a specific size range or number of bedrooms to accommodate the size of your family. If you are looking for the perfect house, keep in mind that this doesn't really exist, and while you can get a lot of what you want, sometimes you have to compromise.
If your real estate search includes looking for homes for sale in Livermore or Pleasanton or perhaps real estate in San Ramon or Dublin, contact a local real estate expert for help. The staff at 1stInSite.com, for instance, specializes in matching clients to the perfect home or commercial property in the East Bay area, including all parts of Alameda County or Contra Costa County.
About the Author:
Madeleine Glazier loves blogging about the real estate industry. If you are looking for Livermore real estate agents, or to discover Pleasanton CA real estate agents, please check out the 1stInsite website now.
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