For generations, owning a home has been considered by many of us to be an important and significant component/part of the so-called American dream. However, after more than 15 years as a licensed real estate salesperson in New York State, I have found that for most, the process and time frame involved in trying to achieve this goal is all too often a painstaking eager, defiant! So wouldn’t it make sense, if possible, for potential homebuyers to follow these 6 steps? With that in mind, this article will attempt to briefly consider, examine and review what this means and represents, and why, if used wisely, it could make this period so much less stressful!
1. Prequalification / Preapproval: Before beginning this search, it’s smart to save time, as well as reduce stress, for a potential buyer to consult with a mortgage professional and make sure you qualify for a loan. However, it is even prudent to get pre-approved, which means that the only remaining step is to ensure that the subject – house, assessfor the required amount. What could be more stressful than shopping and finding the great home of one’s dreams, and then being unable to get it for not doing so?
2. Fix/repair Credit, first: Before proceeding, your professional adviser must inform you of any problems with your credit history, etc. Before going any further, go ahead, it’s prudent and effective/efficient to fix any potential hurdles/problems and repair your overall credit.
3. Pay-down, other debt: Lenders typically use a number of financial formulas, many of which largely take into account your total debt, as well as what you might be able to pay for your home component of it. Most recommend a potential buyer pay off other debts before trying to get any home loan!
4. Accumulation – initial payment: In most conventional mortgages, an individual receives the best rates and other terms when they pay a significant percentage of the purchase cost of the home. In most cases, for a single family home, 20% is the magic percentage, required and recommended!
5. Collect reservations: Informed Buyers. knowing and understanding what reservations could make home ownership a less stressful and smoother process. Therefore, doesn’t it make sense to gather the necessary financial reserves so that there are no undesirable responses?
6. Cooperate with the Mortgage Banker: When you work together with your mortgage banker, and proceed, as – a – team, the process runs smoothly, etc. Have a thorough discussion, early on, so that you are aware of all the requirements, and what the lender, many, need, from you, in terms of paperwork, etc.
Achieve your dream home by being as prepared as possible and ready to tackle and overcome all obstacles. Will you do what is best for you?