“According to a recent survey; 62 percent of voter rated the importance of home ownership as a 10 on a scale of 0 to 10; 91 percent said, “home ownership is part of the American dream””.
If you are a first-time buyer or an experienced owner, buying a house requires a checklist.
Have a good credit score: The higher your credit score, the lower your down payment and monthly payments. Below 660 or 680 you are either going to pay sizable fees or a higher down payment. On the other hand a score of 700 to 720 will get you a good rate and a 750 credit score and above will get you the best rate on the market.
It’s important to buy a home you can afford: Buy a home that’s financially comfortable for you. If you are using an FHA financing, your home payment usually can’t exceed 31% of your monthly income. For conventional, home mortgage should be about 28% of gross income.
Save for down payment and closing costs: Typically you’ll need to save enough money to put down 3.5% for FHA loan and anywhere from 10% to 20% for conventional loan.
Have a healthy savings account: Have a three to five months’ worth of mortgage payment set aside will make you a better loan candidate.
Be preapproved for a mortgage: Ask your Real Estate Agent to recommend a good lender. Approach a loan officer or a lender for a pre-approval. It is always good to have financing in place before you begin the real home shopping.
Buy a home you like and you can afford: It is important to buy a home that will make you happy for few years.