Buying a house can be a bit stressful, and whether it's your first time buying a home or you've been through the process many times, there's no getting around the fact that buying real estate requires some work. If you are ready to buy, make it easier on yourself by completing some of the following tasks before you look for that perfect property.
Your first step should be to get your finances in order. Check your credit score and make sure it is a solid number. Anything about 700 or higher is very good for potential home buyers. Remember that the months preceding a home buy are not the time to start opening a bunch of credit card accounts or taking out loans for other items. The cleaner your finances look, the better chance you have of securing a good loan because you simply look like a better risk to a lender.
Of course, you also will want to figure out how much house you can afford. This is dependent on the amount of money you have saved for a down payment, as well as your monthly income and overall finances. Obtaining pre-approval for a loan is important as well, and lenders will look over your finances carefully to determine how large of a loan you will be able to handle. Often a lender will not approve you for a loan that requires you to designate more than 30 percent of your monthly income toward house payments.
It is also good to think about what type of mortgage you wish to have, as these carry different rates of interest and terms. Some loans have fixed rates of interest, others have variable rates and still others are a combination of both. The fixed-rate mortgages are good options if you plan on staying in the home for many years. A variable-rate loan might have a very low rate of interest initially but can adjust year to year and definitely can adjust higher when interest rates go up. A hybrid of these two would be a loan that is fixed for three to five years and then it starts to vary. The variable loans can be a good option for those who don't plan on living in the home for a long time, as you can get a lower rate and pay less each month.
In addition to your finances, you also need to think about the size, style and location of the home that you want to buy. Create a list that has several must-have features, as well as many things you would like to have. Perhaps your must-have items include a certain location, such as within a specific school district. Other must-haves might include a specific size range or number of bedrooms to accommodate the size of your family. If you are looking for the perfect house, keep in mind that this doesn't really exist, and while you can get a lot of what you want, sometimes you have to compromise.
If your real estate search includes looking for homes for sale in Livermore or Pleasanton or perhaps real estate in San Ramon or Dublin, contact a local real estate expert for help. The staff at 1stInSite.com, for instance, specializes in matching clients to the perfect home or commercial property in the East Bay area, including all parts of Alameda County or Contra Costa County.
Your first step should be to get your finances in order. Check your credit score and make sure it is a solid number. Anything about 700 or higher is very good for potential home buyers. Remember that the months preceding a home buy are not the time to start opening a bunch of credit card accounts or taking out loans for other items. The cleaner your finances look, the better chance you have of securing a good loan because you simply look like a better risk to a lender.
Of course, you also will want to figure out how much house you can afford. This is dependent on the amount of money you have saved for a down payment, as well as your monthly income and overall finances. Obtaining pre-approval for a loan is important as well, and lenders will look over your finances carefully to determine how large of a loan you will be able to handle. Often a lender will not approve you for a loan that requires you to designate more than 30 percent of your monthly income toward house payments.
It is also good to think about what type of mortgage you wish to have, as these carry different rates of interest and terms. Some loans have fixed rates of interest, others have variable rates and still others are a combination of both. The fixed-rate mortgages are good options if you plan on staying in the home for many years. A variable-rate loan might have a very low rate of interest initially but can adjust year to year and definitely can adjust higher when interest rates go up. A hybrid of these two would be a loan that is fixed for three to five years and then it starts to vary. The variable loans can be a good option for those who don't plan on living in the home for a long time, as you can get a lower rate and pay less each month.
In addition to your finances, you also need to think about the size, style and location of the home that you want to buy. Create a list that has several must-have features, as well as many things you would like to have. Perhaps your must-have items include a certain location, such as within a specific school district. Other must-haves might include a specific size range or number of bedrooms to accommodate the size of your family. If you are looking for the perfect house, keep in mind that this doesn't really exist, and while you can get a lot of what you want, sometimes you have to compromise.
If your real estate search includes looking for homes for sale in Livermore or Pleasanton or perhaps real estate in San Ramon or Dublin, contact a local real estate expert for help. The staff at 1stInSite.com, for instance, specializes in matching clients to the perfect home or commercial property in the East Bay area, including all parts of Alameda County or Contra Costa County.
About the Author:
Madeleine Glazier enjoys writing about the real estate industry. If you are looking for Livermore real estate agents, or to find Pleasanton CA real estate agents, please check out the 1stInsite.com site today.
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