Buying your First Home

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Here is a checklist of things to do before, during and after buying a House:

 

·         Do your research on Mortgage rate; Make sure to check all the banks and see who is offering the lowest mortgage rate in the market today.

 

·         Keep Your Credit Score high; if your credit is below 660 you will end up paying sizable fees or a higher down payment. Clients with credit score 750 and above usually get the best mortgage rate in the market. You can increase your credit by not apply for new credit cards at least a year before applying for mortgage.

 

·         Realistic Debt-to-Income Ratio, Calculate the mortgage payment with all the expenses and make sure that it does not exceed your income.

 

·         Do not forget the loan fees; Make sure to put money aside for closing cost. For a $200,000 mortgage, closing costs run (depending on where you live) from $2,300 to $4,000.

 

·         Save Money; Money in your bank account makes you a better candidate for the loan. It’s essential for the lender to see that you are not living paycheck to paycheck.

 

·         Get preapproved for the Mortgage; Make sure to get a preapproval before you make any decision. It is always better to know how much money you can get for the house.

 

 


Reference:


Dratch, D. 6 Must-Dos Before Buying A Home | Bankrate.com Retrieved from http://www.bankrate.com/finance/mortgages/6-must-dos-before-buying-a-home-7.aspx



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