How To Buy A Home

The dream of home ownership for many of us starts as children or young adults.  We often dream about what we want in our house when we grow up. Home ownership is the way to make this dream a reality.

There are some things that you will want to do so that when you are ready to start looking for your house, you will be able to make an offer before anyone else can.  You will want to obtain a pre-approval for a home loan.

When you talk to a lender for a home loan one of the first things they will look at is your credit. Having a high credit score is one of the easiest ways to save money on a home loan.  The higher the score you have, the lower the interest rate you are likely get on your loan.  Before you meet with a loan officer you will want to make sure everything is up to date on your credit report, and you can do that at this government website.

Now that you have verified that your credit record is accurate, you will want to know your credit score.  You should be able to get it from one of the 3 major credit bureau’s when you check your credit reports.  You will want a credit score of at least 640, but the higher the score the better your interest rate may be.

Most times when you buy a home you will also need to pay some cash at the time of closing.  Often this will be a percent of the price of the home you decide to buy, but may also include closing costs.  In addition to having money for a down payment your lending officer will also check your debt to income ratio.  The FHA currently requires a debt to income ratio below 55%, while conforming limits are even lower.

To get the ball rolling on your new home purchase I ask that you fill out the form on the right side of the screen so that I can start the pre-approval process to get you ready to go house hunting!