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Before You Look For Your New Home
. Decide on the kind of concern. These are just a couple
home you’re looking for. of items that can come into play
Know a) what you want and, when you think about the length
b) what you need in your new of time you’ll be living in your
home. This will save valuable new home.
time and energy. Focus on your
specific requirements, and you’ll 4. Start a “negative checklist.”
have a personalized game plan. What DON’T you want in your new
You’ll be headed towards your home? Write these things down as
very special goal: the home you think of them. First place to
that’s right for you. begin: your current residence.
What do you want to change or
2. Ask yourself: “Where do I eliminate? This could include
really want to live?” proximity to neighbors, the size
Answer this, and your priorities of the kitchen . . . all sorts of
will be clear to you. Is being factors. By setting your
close to a school a big factor? priorities, you’ll be focused on
How about shopping? Access to finding what’s best for you.
entertainment, medical care, and
major transportation 5. Consider lifestyle.
thoroughfares might also be Do you work from your home? Then
considered. Specific you’d better be sure your new
neighborhoods will begin to home is the right place for your
attract your attention. in-home office. Maybe you’re a
gardener. In that case, a yard
3. Think about how long you may take on added importance. And
expect to live in your new home. what about entertaining? Make
Are you raising a family? Are your list, and prioritize your
more children on the way? Or needs. You’ll quickly see what
maybe resale value is your main features are most significant to
you. If you are unable to find a You can get your credit score.
home in a particular price range, How? Some companies that help you
this list will help you decide find the lender that meets your
which features you might be able requirements will obtain your
to live without, and which are credit report for you. This is
necessary parts of the life you provided at no extra charge -
want to lead. simply check their online form.
Your credit report determines
6. Price-wise: is it in the your credit score, which is
ballpark? needed to qualify for a home
You love the house you’re looking loan. The three major credit
at. It’s by the right schools, bureaus, which can individually
and there’s an island in the provide you with your reports,
kitchen where you can visualize can also be contacted. Any errors
yourself preparing your favorite that happen to appear on your
meals. And then you discover – credit report should be
it’s out of your price range. Few corrected.
things are more frustrating. So
here’s something to keep in mind: b) Decide on a monthly payment
the best way to know how much you amount
can afford is to find out how Do you know how much of a monthly
much money you can qualify to mortgage payment you're
borrow. comfortable with? You may qualify
for a loan amount that requires a
There are two things you'll want monthly payment greater than your
to consider doing before talking budget really allows. Sit down
with a home loan expert about how and figure out your monthly
much you can afford to borrow: expenses for your home. Items
such as maintenance, home
a) Find out your credit score improvements, taxes, insurance,
and association fees, if fixed-rate, and you want to lower
applicable, should all be your rate (and your mortgage
considered. payment), you'll have to
refinance.
7) About Mortgages
A mortgage is a loan you take out - Adjustable-rate mortgages
to finance the purchase of your (ARMs): ARMs start with a lower
home. It's also a legal contract: interest rate than a fixed-rate
you promise to pay back that loan mortgage for a certain
on a monthly basis. Your monthly period—typically 1, 3, or 5
payment typically goes toward years. After this period, the
interest, taxes and insurance as rate adjusts, usually annually.
well as the loan’s “principal,” That adjustment is based on a
or the original sum. pre-determined index. An ARM is a
good choice if you're expecting
There are hundreds of variations to live in your home for less
of mortgages, but by reviewing than five years. It can also help
the key points below, you’ll you qualify for a larger loan.
learn most of what you need to
know: - Term: The “term” of your
mortgage is the number of years
- Fixed-rate mortgages: These you have to pay back the loan.
have a set or “fixed” interest 30-year terms are very common,
rate over the entire term of the but 10, 15, 20, and 40-year terms
loan. Most mortgages are are also available.
fixed-rate. The main advantage of
a fixed-rate mortgage is that - Down payment: This is the
your monthly payment never difference between how much you
changes. The disadvantage is that borrow and the purchase price of
if interest rates fall below your your home. The down payment
needed to purchase is often much buyer:
less than many people realize. In
fact, very low and even zero down 1) You know exactly how much
payment loans may be an option. home you can afford. No
guesswork!
Understanding these basic points 2) You're in a better
should encourage you to get position to negotiate a lower
approved for a home loan before purchase price.
you begin to look for your new 3) Once the appraisal and
home. And getting that title work is done, you can close
pre-approval is a very smart on a home in days, not
move. The next section explains weeks. This can save the
why in greater detail. seller a lot of money. That’s
another bargaining chip – for
8) Getting approved before you you, the buyer.
start to look – a smart approach 4) When you’re pre-approved,
When you’re already approved for it’s as if you’re shopping for a
a mortgage, the seller knows your home with the money
offer is good. That puts you in a you need right in your
much better position to negotiate pocket. You're a virtual cash
for a lower purchase price on buyer!
your new home. 4 main reasons why
pre-approval is good for you, the
About the Author:
Matt Schaub and Silas Ellman started ReallyGreatRate with a simple idea: give every consumer the speed and convenience of online loan service, while providing the most personalized financial solutions available. For more free info, go to Really Great Rate
Read more articles by: Matt Schaub
Article Source: www.iSnare.com |
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