Monday, February 7, 2011

Before You Buy a Home...

Before you buy a home... way before

...think about getting your finances and credit score in order.  It can take anywhere from 3 to 6 months to have an entry recorded on your credit history.  It will take some time to save the extra dollars needed for a down payment.  And...you will want to visit a great lender so you're prepared ahead of time to make an offer on a home.  Last, you will need a wonderful Realtor to explain this whole, complicated process. Don't go at this alone without a Realtor who does this everyday. 

Below is just a few reasons to think ahead...
  • Credit Scores of at least 620 will be enough to get you qualified for a home mortgage but... look to put more cash "upfront" if it's lower than 620.  The better your credit scores... the less cash required and the lower your monthly payments can be.  660 to 680 is a nice range to be when trying to purchase your home.
  • For an FHA-insured loan... your home payment can't exceed 31 percent of your monthly income... for a Conventional loan, a safe formula is 28 percent.
  • Save for your down payment anywhere from 3.5 percent for an FHA to 20 percent for a conventional loan. 
  • Bond money and down payment assistance are programs for some qualified buyers.  Even sellers may agree to assist with a buyers down payment.
  • Documentation will be required by your lender.  They will want 2 years of tax returns, 3 months of bank statements and the most recent 30 days of employers paycheck stubs.
So, call me first... then I will connect you with a great lender. We both will take you through this purchase, or... get you ready for the very near future purchase with our experience!

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