Rules in Buying a Home

Rules in Buying a Home - As we approach the home-buying season, here are some tips to home buyers to make the experience easier and less stressful:

1. Improve your credit score.

Credit scores define the type of mortgage (that would lead to the kind of home) you’ll be able to purchase. If you haven’t started working on your score, that's the first thing you should do if you are planning to buy a home.

2. Stay at your financial situation.

Lenders look for steady income, a good debt-to-income ratio and an overall solid financial base. So this is not a good time change jobs, make large purchases or transfer money between accounts if you are planning to buy a home.

3. Consult professionals.

Mortgage professionals and real estate agents will provide good advice, even if you are just on the planning stage. Trying to buy a home without the help of professionals to save money may cost you quite a bit more in the long run.

4. Save money.

Now that the Holiday season is over and a new year has started, focus your resolution in buying a new home - for the expenses, down payment, etc. In this line, try to avoid opening new lines of credit like credit card, store charge card. It won't help in saving and building your credit score.

5. Start your home research.

Start deciding what type of home you want, amenities you need, neighborhood you want to live in. You may want to consider schools, services, shopping and transportation. You can start looking at homes for sale when you already know how much you can afford to avoid looking at homes out of your price range.

Thursday, February 4, 2016