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The housing market is
slowly recovering and so are our bank accounts. Experts believe that interest rates will
begin to increase but, says Clif Droke, a financial marketing
analyst, a sustainable rising interest rate trend isn't likely until
after October 2014."
Make a Plan
The good news is that
you have time to prepare to buy a home and, hopefully, still benefit from lower
interest rates. Make a plan to get
yourself in financial shape to buy a home and start today.
1. Check Your Credit Score- Before
you do anything else, you need to know what your credit score is and give
you time to correct any errors or inaccuracies that may cause problems
later. (Read: The Best Way to Claim
Credit Reports)
To qualify for mortgage loans with the best
interest rate, you would need a score of 740+. FHA loans accept scores
as low as 580, under specific conditions and with certain restrictions,
according to Bill
Rice on Quizzle.com. "However, these programs are constantly changing and
often have restrictions - just like credit cards and auto loans." he says. "To get more traditional mortgage loans, your
credit scores need to get above the 620 to 640 range." (Read: Credit: Use it or Lose It)
2. Location, Location, Location-
The old adage is important to keep in mind for that day when you will need
to sell it. Keep in mind
transportation options; do you want to be close to work or school? (Read: Walkability Adds to
Home Values)
Check out the neighborhoods you would like
to live in. Go to Open Houses, go to
the local shopping areas and restaurants to get a feel for the area. Talk to the homeowners to see if it's the
right fit for you.
3. It's all in the details...
how big of a house do you need for your family? "Think about your must-have items,
including number of bedrooms and bathrooms, a multicar garage, pool,
fireplace, eat-in kitchen or finished basement." states an article on MSN
Real Estate. "What amenities and resources do you need to have? Does your
home need to be in an area with great schools? Once you decide what you need and want, it is time to start shopping. (Read: How to Choose the Right
Home For You)
4. Find an
Agent:
Finding the
right agent could make all the difference in your home buying
experience. Interview more than one
agent and get referrals from friends and family. Make sure they understand
your long term goals and needs. (Hire
the Right Agent)
Your REALTOR® can
also help you find a lender, insurance agent and home inspector to help you
with the home buying process. (Find a real estate professional)
5. Get
Pre-Approved for a Mortgage: You will need to supply a lender with at
least two years of tax statements, and information about all your assets
including savings, stocks, etc. You
will need to show proof of income and "If you're receiving money from a
family member or friend -- for a down payment, for example -- you'll be
required to provide a letter from the person giving the gift stating that
the recipient has no legal obligation to pay it back." states the article.
Shop around for a lender. Shop
for the best interest rates, but also pay attention to closing costs. (Read:
Closing Costs: Don't Pay Too Much)
6. Start Searching: About 6 months before you want to move,
is a great time to begin your search. There are many online sites to
search for housing in your area which can be very convenient. "But remember that online pictures can
be deceiving." states MSN. "You will save yourself and your agent a lot of
time by driving past the property before you agree to see it together."
7. Making an
Offer:
Reaching an agreement may involve many offers and
counter-offers. Your agent will be
valuable in these negotiations and will be able to help you understand the
contracts and the process.
Denver is
a sellers market these days with
many homes receiving multiple bids. Be
prepared to lose a few bids before finally getting your home. Keep in mind, that the fact that you have
gotten pre-approved for a mortgage
might make your bid get accepted over the others! (Read: How
to Get a Pre-Approved Mortgage)
8. It's Time to Move! "As if the entire mortgage-approval
process isn't stressful enough, you also need to worry about the logistics of moving." advises
MSN. "If you're a renter, now's the
time to give your landlord the proper notice that you're moving out. You
should contact your utility service providers to determine if you'll need
to transfer or terminate your service and you may want to hire
professional movers." (Read: Preparation is the Key
for Your Next Move)
By following these
simple steps, you could be ready to buy your dream home next year!
See more at MSN.com
Posted on April 18, 2013 12:40:05 by Scott.Shields
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