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Real Estate Guides Home Buyer's Guide Getting Your Financial House in Order
Real Estate Guides Home Buyer's Guide Getting Your Financial House in Order
Last Updated on Monday, 17 March 2008 14:54 Written by Clancy Fort Monday, 17 March 2008 14:49
A new home purchase for most people is the most amount of money they will spend on a single purchase. Anxiety over this and shock and awe over the amount of money needed, is a perfectly natural reaction. So let’s take this step by step.
First things first, take stock of what you’re working with…
- How much cash do you have to put for a down payment? Typically, you should have 5% to get the best loan rates. If you don’t have the 5%, this is a good time to have a nice talk with your family to see if they have help. 100% financing is available, however it is an expensive proposition at this point.
- How much can you afford to spend every month on your house payment? This is a loaded question, because it will determine how much home you can afford to buy.
- Talk to a mortgage broker and have them run your credit score. Your FICO score will range between 500 and 800. 800 being best. If your score is over 650, you should be eligible to buy a house. (You should talk to your mortgage broker about this.)
The mortgage broker’s job is two fold…
- Get you approved for a loan that you are comfortable with a payment you can afford.
- Based on the loan you like and the payment gives you a max value you can afford to buy.
That’s basically all you need to write an offer on a home. Now, for the little stuff…
- Make sure the funds you have for the down payment are available. If you’re borrowing or using funds from a relative, make sure those funds are deposited into your account at least 60 days prior to writing any offer. Some lenders require your funds to be mature, meaning that the funds have been in your possession for a period of time.
- Get you mortgage broker to write you a pre-approval letter with your FICO score, the loan amount and the type of loan you are using. This step could save you money in the deal.
Well, now you have you financials in order and your ready to go buy a home.
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In every transaction there is usually a request for repairs given to the seller by the buyer. The work order is usually backed up by a third party inspection report. The following is a list of some possible work orders. The work orders must be completed prior to closing and the seller is responsible for having them done. Check with your local authorities for specific requirements. 
A plan is something that most people over look when going into a new home purchase and if you don’t have one it could cost you lots and lots of money. A good REALTOR® will be able to help you with your plan. The biggest issue with your plan is TIME.