Local Buying Tips

Are you ready to buy a home? It's a big decision and an important decision. As with any big decision in life, it's crucial to have your finances in order. Many factors will influence your ability to secure a mortgage with a lender. Here are a few tips and tricks to help make your financial situation attractive to prospective lenders. And be sure to research different lenders to be sure you work with one you trust.

1. Check your credit report. There are many resources that offer free credit checks that do not affect your credit score. Lenders will check your credit report before deciding if you are a risk or a safe bet for a mortgage. Knowing your credit score before contacting a lender is a good idea. If you have too low of a credit score, you might not qualify for a mortgage. The higher your credit score, the better.
2. Improve your credit standing. One way to improve your status in the eyes of lenders is to pay down credit card balances and car loans to reduce your credit utilization ratio. A low credit utilization is a good thing! And do not apply for new lines of credit or make big purchases on your credit card before applying for a mortgage loan. It will negatively affect your credit (FICO) score.
3. Be realistic about what you can afford. Do your research and determine what you can afford for a monthly house payment. This includes your mortgage payment, home insurance, property taxes, utilities, internet, etc. (set monthly expenses for your home.) Take this number with you when you talk with lenders. If you can put 20% or more as a downpayment, then you will avoid PMI (private mortgage insurance).