Purchasing a home is exciting. It is a big undertaking and shouldn’t be entered into lightly. It should be smooth and stress free from start to finish. It is wise to do some homework beforehand and prepare for the big purchase.
Before you start your home search, you’ll need to get a few things in order
- Review your credit report to make sure there is no errors.
- Make sure you have at least three trade-lines and make payment on time to bring the credit score up. A good credit score makes it easier to qualify for a mortgage and get the lowest rates
Leave old trade-lines open and avoid opening new trade-lines. Opening new trade-lines six months away from applying for mortgage can temporarily lower the credit score.
- Write down “Must Have” and “Deal Breaker” checklistFor example: 2 ½ bathroom and a garage can be on the “Must Have” check list. A home in a high-risk flood zone can be on the “Deal Breaker” checklist
- Buy less than what you can afford.
- It would be wise to have 20% down payment and a 10% buffer in savings. The mortgage amount should be less than 30 percent of your total household gross income.
- Take your time
Take your time shopping around for this major purchase until you find the home that you’ll love living in for years to come.