If you are in the market for a new home, this is an exciting time for you, but it also often is accompanied by some anxiety and stress. Even someone who has bought and sold several homes can become stressed out by the buying process. To lessen the stress of finding the perfect home and buying it, here are a few tips to think about.
Your first step should be to get your finances in order. Check your credit score and make sure it is a solid number. Anything about 700 or higher is very good for potential home buyers. Remember that the months preceding a home buy are not the time to start opening a bunch of credit card accounts or taking out loans for other items. The cleaner your finances look, the better chance you have of securing a good loan because you simply look like a better risk to a lender.
You also need to determine your budget. Talk with a lender and discuss your financial situation and get pre-approved for a loan. These days, lenders are fairly conservative about pre-approval, so you are less likely to be talked into a situation that you really cannot handle. Just to be safe, it is recommended that your mortgage payment not exceed more than 30% of your income. Many lenders won't even approve a loan if your mortgage payment will be higher than this percentage.
Of course, you also have a variety of mortgage choices to think about. Some have a fixed interest rate that will never change, such as 15-year fixed or a 30-year fixed. These are good, safe options for anyone who plans on living in the home for a long amount of time provided you get a good interest rate. Variable rates can cause your mortgage payment to fluctuate from year to year, but they are often much lower during that first year than a fixed rate. A hybrid rate is another option that means you will pay a fixed rate for 1, 3 or 5 years and then the rate will vary. Sometimes you can snag a great low rate and then refinance a few years down the road if the opportunity arises and you can fix the rate. These hybrid rates also can be good if you don't plan on making this purchase your forever home.
Before you begin searching for a home, write down a comprehensive list of what you want in your new home. Think about everything from location to the number of bathrooms and bedrooms you need, as well as the size of the yard and amenities. While you can't always get everything you want, prioritize your list so that the really important things are at the top.
For those interested in finding homes for sale in San Ramon, Pleasanton, Dublin, Livermore or anywhere else in Contra Costa County or Alameda County, it would be wise to find a real estate firm that concentrates its efforts in the East Bay area, such as the team at 1stInSite.com. Their experts can locate homes and commercial buildings throughout the East Bay area that fit your needs and budget.
Your first step should be to get your finances in order. Check your credit score and make sure it is a solid number. Anything about 700 or higher is very good for potential home buyers. Remember that the months preceding a home buy are not the time to start opening a bunch of credit card accounts or taking out loans for other items. The cleaner your finances look, the better chance you have of securing a good loan because you simply look like a better risk to a lender.
You also need to determine your budget. Talk with a lender and discuss your financial situation and get pre-approved for a loan. These days, lenders are fairly conservative about pre-approval, so you are less likely to be talked into a situation that you really cannot handle. Just to be safe, it is recommended that your mortgage payment not exceed more than 30% of your income. Many lenders won't even approve a loan if your mortgage payment will be higher than this percentage.
Of course, you also have a variety of mortgage choices to think about. Some have a fixed interest rate that will never change, such as 15-year fixed or a 30-year fixed. These are good, safe options for anyone who plans on living in the home for a long amount of time provided you get a good interest rate. Variable rates can cause your mortgage payment to fluctuate from year to year, but they are often much lower during that first year than a fixed rate. A hybrid rate is another option that means you will pay a fixed rate for 1, 3 or 5 years and then the rate will vary. Sometimes you can snag a great low rate and then refinance a few years down the road if the opportunity arises and you can fix the rate. These hybrid rates also can be good if you don't plan on making this purchase your forever home.
Before you begin searching for a home, write down a comprehensive list of what you want in your new home. Think about everything from location to the number of bathrooms and bedrooms you need, as well as the size of the yard and amenities. While you can't always get everything you want, prioritize your list so that the really important things are at the top.
For those interested in finding homes for sale in San Ramon, Pleasanton, Dublin, Livermore or anywhere else in Contra Costa County or Alameda County, it would be wise to find a real estate firm that concentrates its efforts in the East Bay area, such as the team at 1stInSite.com. Their experts can locate homes and commercial buildings throughout the East Bay area that fit your needs and budget.
About the Author:
Madeleine Glazier loves blogging about the real estate industry. If you are searching for Livermore real estate agents, or to discover Pleasanton CA real estate agents, please check out the 1stInsite.com site now.
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