The home market took a deep plunge just a few years ago and it is only now that some areas are coming out of the pitfall. The word got around, and around, and around about the predatory loans that took advantage of the unwary buyer. People were scared off, or unable to purchase a new home. Now that things have stabilised a bit, so it might be a better time to buy a home than in recent years.
Once you’ve decided to take the step and buy a home, the real work begins.
Here are some solid ways to prepare for buying that dream home and making sure you make the right decisions.
How’s Your Credit?
This may be the biggest step in this phase of preparation. Have you checked your credit score? If you have, have you checked all three reporting agencies? Looking into your credit history can be like looking in your vegetable drawer in your fridge- you know there is something smelly in there and dread opening it to find out.
One way to monitor your credit is to consider a company like LifeLock. A company like this will monitor your personal information and keep your credit intact, safeguarding it from possible identity threats. Regularly monitoring your new credit score throughout the home buying process will ensure that you do not run into any surprises. What may be a good credit rating could quickly turn into a bad one if a surprise from your past suddenly pops up at the last second, according to Wallet Blog. Regularly making sure that your identity has not been tampered with is always a good idea anyway, and when buying a home, it is essential.
Are You Prepared?
Can you afford to dedicate money for an extended amount of time? You will want to make sure that your current employer will be around for the long haul of your mortgage. Nothing is certain, but make sure that you will have a job in a few years. Are there warning signs at your company? Have there been cutbacks? These are things to consider before buying a home.
Creditors and loan officers will need to make sure that you’ve been at your current company for a certain amount of time. They need assurances that you will be around to make those monthly payments for the length of your loan.
Have You Saved Enough?
You will have to make sure that you have a considerable lump of money set aside to ensure you can put money down on the new home. If you are able to put down a large amount, generally around ten percent, it could decrease your monthly payment. In addition to this, setting aside some extra cash for possible home problems is very helpful. Owning a home is much different than having a landlord. If something goes wrong, you will need to have money or considerable credit on hand to fix it.
For more ideas about how to save your pennies check out the Magical Penny Saving money articles archives.
Are you in the US and are veteran or married to a veteran? Check with the US federal government because you may be able to qualify for a VA loan. VA loans can qualify for zero percent interest and/or no money down. Make sure that you start the process and get started early, as there are often waiting lists.
Buying a home is becoming easier again, little by little. Having the right credit and funds are two ways to be better qualified in your goal of becoming a homeowner. Staying on top of the risks and preparing yourself financially and economically will only improve the experience of buying that dream house.