Financing Your Home - In a tough economy.Financing your home is a challenge in this new financial environment. Lending institutions have tightened up their lending guidelines making it more difficult to get the financing you need to purchase or finance your home.
For those looking to purchase in this market there are several things you should keep in mind to ensure that you are making the right decision. What should you know about buying a home?
Here are some tips that could save you a lot of time, money and trouble.
1. Plan ahead. Establish good credit and save as much as you can for the down payment and closing costs.
2. Get pre-approved before you start looking. Not only do real estate agents prefer working with pre-qualified buyers; you will have more negotiating power and an edge over homebuyers who are not pre-approved.
3. Set a budget and stick to it. You can find mortgage calculators online or a knowledgeable mortgage person to help you determine a comfortable price range.
4. Know what you really want in a home. How long will you live there? Is your family growing? What are the schools like? How long is your commute? Consider every angle before diving in.
5. Make a reasonable offer. To determine a fair value on the home, ask your real estate agent for a comparative market analysis listing all the sales prices of other houses in the neighborhood.
6. Choose your loan (and your lender) carefully. For some tips, see the question in this section about comparing loans.
7. Consult with your lender before paying off debts. You may qualify even with your existing debt, especially if it frees up more cash for a down payment.
8. Keep your day job. If there is a career move in your future, make the move after your loan is approved. Lenders tend to favor a stable employment history.
9. Do not shift money around. A lender needs to verify all sources of funds. By leaving everything where it is, the process is a lot easier on everyone involved.
10. Do not add to your debt. If you increase your debt by financing a new car, boat,
11. Timing is everything. If you already own a home, you may need to sell your current home to qualify for a new one. If you are renting, simply time the move to the end of the lease.
Taking the time to carefully think through your plans will make the process of financing your home easier and more rewarding.
If you have questions or need assistance call 706-621-5584 Proficio Mortgage a wholly owned subsidiary of Proficio Bank
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