Financing Your Home
Tips to Setting up Your Financing
Most people don't have the actual cash needed to purchase a
home out right so the next best thing is obtaining a home loan.
This can be done several ways and there are literally hundreds
of options and programs that are designed to fit each person.
But there are some steps to take to ensure you start down the
road to homeownership correctly.
1. Examine your own finances first
Make sure you take a good look at where you stand financially.
This means more then simply balancing your checkbook. Get a
copy of your credit report and correct any mistakes, clear up any
late issues and get a good handle on your credit score. Once this
is done, then you can sit with a lender to discuss your options further.
2. Get a pre-approval letter
Once you know about how much you have in the bank and you have
a good idea of your financial snapshot, sit down with a lender you
trust and get a copy of a pre-approval letter. A lender can be a bank,
credit union, mortgage broker or private lender but having a letter
stating your finances have been looked over and you can actually
afford a home can set you up for offer approval sucess.
This letter you will present to seller when submitting an offer. It shows
the sellers you are a serious buyer that have done the homework
necessary to buy a home. If you are offering less than asking price
and are approved for more then you are offering, ask your lender to
customize the letter to state exactly how much you are offering.
3. Have some funds set aside for various reasons
You will need some out of pocket cash for buying a home. Even if you
go with a zero down loan, having earnest money and inspection costs
available makes a world of difference. If you are barely scraping by
when getting into a house, it may not be the best idea for you. Once
you own a home there are more than just the mortgage payments to
take into consideration.
4. Do your part in making the closing happen smoothly.
Lenders will need various documents from you such as W-2's, tax
information, pay stubs, etc. Having this in hand ahead of the game
will put you in a better position to close on time. Plus getting your
home owners insurance set up will also help in the long run.
With these simple steps you can set yourself up for home buying sucess.
Please contact me anytime for more information on this, finding an escrow
company or any Bothell homes or Woodinville homes for sale.