First Time Buying Tips
If you are tired of renting, and have good credit, why not buy a home? Most people spend years paying rent to a landlord when this money could very easily be paying a mortgage. Owning a home is easier than most people think, all it takes is some careful planning and the proper financing and you could be on the property ladder too!
One of the major misconceptions of home buying is that you require a large down payment to buy a home. This is not so. In today's market there are many different financial options to those who quality. Chances are if you have good credit and a paycheck that can justify the loan, you will be able to find a mortgage company that is willing to finance 100% of the home! The proviso here is that your credit rating is sufficient to appease the mortgage company. There are a few things you can do to improve your credit in preparation for this application. Get a copy of your credit report from your bureau and study it in detail. Are there any outstanding issues? If so make sure to take care of them and get letters of release once they are settled. Then ensure that they are removed from your report. This is a critical step for any home buyer, first-time or otherwise.
Now that that step is complete, the next logical step is to secure financing for the purchase. Mortgage companies will do what is known as a pre-approval. A pre-approval is a concrete agreement between borrower and lender. It stipulates the exact amount of funds that you have available for your home purchase. Having a pre-approval in your pocket when searching for your home gives you remarkable leverage in the buying process. It sets you apart from buyers who do not have secured financing and as you can imagine this is comforting to the seller who is seeking a clean and quick closing.
At this point you can start to shop for homes. Be confidant in what you want and don't be afraid to go after homes that suit your family and lifestyle. Being your own landlord can be quite a rewarding experience. It is an exciting thing to realize that you are now paying off your own home instead of someone else's.#Comments#