9 Things to Know and Do Before Buying a House

Cary_Grant_Myrna_Loy_Mr_Blandings_Builds_His_Dream_House_1948Every homebuyer has a checklist. Whether that checklist includes gaining a better understanding of your credit score, defining exactly what you want in a home, or learning how zoning ordinances may affect your potential property. Knowing what do when you’re readying to purchase a new home is the absolute best thing you can do for your future, connecting yourself with the possibility of having a happy and healthy future in your home.

  1. Improve your credit score: There’s an old rule that remains true: heighten your credit score and the lower your monthly payments. There are credit requirements for mortgages, so it’s important to look at old credit reports to analyze old or unsettled debts. Feel free to consult sites such as TransUnion, Experian, Equifax, and BankRate to gain access to free and no obligation credit reports. By looking at your credit report, you’ll know what prospective lenders will see and it’ll give you an opportunity to clean up your credit. Also, be mindful when applying for new credit cards, which affects your credit score.  
  2. Seek preapproved for a mortgage: The preapproval process is an extensive one, requiring documentation regarding assets and income, so it’s vital that you keep records of the past few years.
  3. Consider how much you can afford: Your home payment shouldn’t exceed 28 percent of your monthly income. That percentage is a rational amount that suggests that you’ll be able to meet financial obligations. Calculate the mortgage payments for your homes within your price range, and consider expenses, such as utilities, taxes, and insurance.
  4. Remember your loans: Look at your financing and credit if want a loan. If you’re in need of an FHA loan, you need to get a credit score of 580 or higher. Also, remember your loan fees and closing costs; do that by seeking down payment assistance or homebuyer’s assistance.
  5. Know the intended home’s value: Inspection and appraisals are important for a buyer. For that reason, it’s important to get familiar with pricing homes. In the same vein, hire a home inspector, who will check for asbestos, wiring, and water issues.  
  6. Maintain a healthy saving account: Rather than setting funds aside sporadically, be sure to set aside money each month so that you’ll be in a better position to fund your down payment and closing costs. Try to have between 3 to 5 months of mortgage payments set aside. Additionally, put aside extra cash in order to finance upkeep, maintenance, and repairs.
  7. Don’t Settle: Rather than buying a house that’s simply affordable, purchase the home that you truly want. Ask yourself important questions, such as ‘Can I afford this home?’ ‘Am I mortgage-worthy?’ And ‘Is it worth the money?’ You need to get all of your questions answered and you need to  get all of your ducks in a row so that purchasing your home is seamless. Know when it’s the right time to buy a home, don’t rush and don’t settle.
  8. Find a hyper-local real estate agent: Seek out a real estate agent who will know everything about the neighborhood you’re interested in. They’ll be able  to share precise information about the neighborhood, including facts about banks, stores, schools, and etc.
  9. Know the Importance of Title Insurance: Home title insurance is a valuable product that can protect an owner’s and a lender’s financial interest in real property against losses relating to title defects, liens, and other issues. Look to companies, such as Assured Title Agency for your real estate transaction service needs.

 

Purchasing a home is likely one of the greatest financial investments of your life, be sure you know exactly what you’re doing when taking this step.


Assured Title Agency is a Denver, Colorado-based title insurance company dedication to provided the highest quality customer service and peace of mind when conducting complex real estate transactions. Be sure to visit our websites: http://AssuredTitleAgency.net and AssuredTitleAgency.com. #titleinsurance #Denver #BeAssuredNow