In spite of popular belief, buying a house in today’s real estate market is NOT a difficult task. Post the real estate melt down, consumers could have money and bad credit or good credit and no money, and still qualify for a mortgage. NOT TODAY!! Today, you MUST be prepared to buy a house. Unlike the mortgage industry of yesterday, you can’t just “flare-up” and decide to buy a house on the spot and actually get it. Today, you have to PLAN for it!
Do you want to buy a house in 2013? If so, congratulations!! I’m going to give you three(3) solid and simple tips about what to start doing today. This “priceless” blog will list and describe exactly what you should be doing right now to easily qualify “in-advance” for a mortgage. The three(3) TIPS are as follows:
TIP #1: Consult A Mortgage Professional TODAY!
Normally, people will tell you to go pull your credit at FreeCreditReport.com. However, you want to sit down with a reputable Mortgage Planner(Loan Officer) that will pull your credit and coach you on what you need to be doing to get prepared and easily approved for a mortgage.
Tell the Mortgage Planner(Loan Officer) your goals, timeframe, budget, etc… This will help them, help you stay on task with what needs to be done per your goals.
TIP#2: Start Saving!
Start saving TODAY! Banks these days want to see that you have some skin in the game. There are ONLY a few loan products out there that will lend 100% LTV(Loan To Value). Those loans are VA(For Veterans) and USDA(For Rural Areas) Loans. However, most consumers are using FHA(Federal Housing Administration) as their loan of choice if they don’t qualify for the 100% loans I just mentioned.
An FHA Loan requires a buyer to put down 3.5%. The lender wants to see this money come from you. However, they will allow the seller of the house to pay your closing cost up to 6%. So, if you are buying a $100,000 house, the lender will require you to put down $3,500. Now, be sure to ask your Mortgage Planner(Loan Officer) how much reserves you should have in the bank in addition to this down payment. The bank wants to see that you will have some money left after putting this money down. START SAVING TODAY!!
TIP#3: Create A Comprehensive List of Needs & Wants!
The days of splurging are over! Millions of people lost their homes because of greed and taking on more than they were able to afford. BUT NOT YOU!! You are going to buy what you need and want to be comfortable. Do you need a 4,000 square foot house when it’s just you? Do you need a $500,000 home when you are barely at home? Do you want to be close to work? Do you want to be close to your kids school? What’s important to you?
I’m starting to see more buyers these days that are purchasing functional and usable space that they know they are going to use. Today’s buyers are more responsible than they were in the past. I recommend you do the same. With that said, be sure to share with your Loan Officer and Realtor the goals you have for yourself/your family. Loan Officers and Realtors do this every day and every month. The average buyer does this every 5 to 8 years. A reputable Loan Officer and Realtor will guide you in the right direction by making sure you stay on task and effectively accomplish all of your goals.
For an experienced Realtor, contact iBuy Realty at 1.888.870.4289 and/or visit our website @ www.ibuyrealty.com to see how iBuy Realty can help lower your closing cost. You are going to love our service and the savings! Congratulations on your decision to become a homeowner…
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