Buying a House by Yourself? Here Are 5 Tips

Purchasing a home as a single buyer is a financially savvy move. Not only do you have the opportunity to make all of the home-buying decisions, but you will also be able to increase the value of your financial profile and build personal wealth. Here are a few pieces of advice to assist you.

1. Make sure your credit report is accurate, and check your credit score with all of the credit reporting agencies. If you need to increase your score, work on making all of your payments on time and eliminating some of your credit. Your creditworthiness will determine the optimum interest rate and terms that you will qualify for.

2. Look at your debt-to-income ratio. Your lender can help determine if you are carrying too much debt relative to your income. Start paying down your debt if your ratio is deemed too high.

3. Whether you are seeking an FHA or a conventional loan, you will need a down payment and closing cost funds. Commit to setting aside a percentage of your income to build the largest amount of down payment reserves that you can.

4. Home ownership typically costs more than renting. Determining your budget ahead of time will give you the cushion you will need for home repairs and maintenance.

5. Make a list of what you must have in a home. You should also decide what kind of home you want. For example, do you want a detached single-family residence or a condo? Your real estate agent can help you with these decisions.

The success of buying a home by yourself also lies in having the right lender to take you through the preapproval process. Please call or email me today so I can assist in making it happen for you.

Is a Preapproval Necessary to Buy a Home?

Your home-buying experience will only be successful if you start the process by getting a loan preapproval. A home loan preapproval will be a firm estimate of what your lender is willing to offer you once you find your perfect home. It enables you to narrow your property search to homes that you know you can afford. Many real estate agents will only work with buyers who have been preapproved.

A mortgage preapproval should be part of any purchase offer that you submit to a seller. Having a preapproval letter in hand allows you to act immediately when you locate your ideal property. It adds strength to your offer and assures the seller that you are a qualified buyer. In a competitive market, it will increase your chances of getting your offer accepted. Knowing you are preapproved for a certain price point of home will also lessen the stress that comes with the home-buying process.

The preapproval process will be very thorough in gathering and evaluating your debt-to-income ratio, income and assets. Once you have shown that you have a good credit score and the lender has verified all of your financial information, a preapproval will be generated. Generally, the preapproval letter will state what amount you are qualified to borrow and will be subject to the selected property appraising at the contract price.

If you are ready to look for a home, please give me a call so I can get the preapproval process started for you.