Thursday, November 4, 2010
Think of Buying a home?
Have you been thinking of purchasing a home but just unsure of where to start? Browsing online or in your neighbourhood and looking at homes, thinking of what would be perfect for you? Scared to take the next step or just unsure? Well keep on reading then!
Lots of people looking to buy a new home find the financial part of the process a bit confusing, and sometimes even intimidating. You may have even started reading up on what you should be doing, well obviously because you are reading this right!? There are a lot of things to take into consideration, so here are a few basic concepts to keep your head on straight and your eyes on the prize:
GET PRE-APPROVED
This will help you to determine what you can afford to purchase. If you can’t afford something right away, at least you can build a game plan to get to where you need to be. No sense looking at homes you can’t afford either, because you may fall in love with one and then can’t afford it after all. Also, most home sellers will work with pre-approved buyers over those who are not pre-approved because they may feel more confident that the purchase will go through.
DON’T CHANGE A THING!
While you are looking for a home try not to make any sudden changes to your finances. Don’t go buy that porche you wanted, and don’t quit your government job to go flip burgers at Wendy’s. Banks like stability in the people they are shelling out all their money too.
PAY OFF YOUR DEBT!!!
If you owe a ton of money for student loans, and on your car, do you really think the bank is going to give you another 200k for a home? Know your current debt level and work to lower it as much as possible between now and when you purchase a home.
CREDIT SCORE?
Don’t have a ton of cash to pay the credit card completely off? That’s ok. Just make sure you at the least pay the minimum payment to keep your credit score good. Payment history accounts for 35% of your credit score. Check with credit bureaus to find your score and fix any errors.
KNOW WHAT YOU ARE GETTING!
The basic mortgage types are fixed-rate, adjustable-rate and hybrid. There are a variety of other types of loans as well though and you should seek the help of a professional to find out what is right for your circumstances. Everyone is different, and therefore everyone needs a different type of loan that fits their needs.
SHOP AROUND!!!
Talk to a mortgage broker. A broker can search out many different lenders, and get many different rates. I’m not saying don’t go to your bank that you trust, but perhaps talk to a mortgage specialist first and see what else is out there for you.
Your financial picture is a crucial part of the home purchase process. If you’d like to know more about home loans, please call or email any time.
Comments
Meet Your Next Realtor, Andrew Miller
Born and raised in the Ottawa area, with years of experience in the Real Estate industry, I have the tools needed to get you started on your next move. Be it buying or selling, I am confident that from your first home, to your dream home, I can help make your dreams become a Reality................ Read More