5 Financial Essentials For New Home Buyers!

5 Financial Essentials For New Home Buyers!

Since, so many, seem to consider, owning a home, of own’s own, is a significant component, of the so – called, American dream, it is important, to recognize, many factors, come, into – play! Many put their emotional feelings, etc, first, but, unless/ until, the basic, financial/ economic necessities, of home ownership, become, significant, and essential, there is a risk, of, instead of this, being a dream, may end – up, as a nightmare, instead! After, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I strongly, believe, there are, at least, 5 financial essentials, for new home buyers. With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, these, and why, they matter.

1. No new debt: Once, someone decides, he wishes to purchase a home, and, will, as most do, take advantage of a mortgage, in achieving his objectives, he must proceed, with the discipline to avoid, adding, any additional debt, and, especially, new types. This means, no matter, how good, a credit offer seems, doing so, too close to seeking a home loan, may, negatively, impact results!

2. Pay – down existing debt: Lenders use several guidelines, and indexes/ proportions, etc, to determine their qualifications. One of the key ones, is the ratio, of debt, to earnings, and, another, is, the ratio, of debt – used/ utilized, to credit limits, etc. Therefore, begin the process, by paying – down, some of one’s existing debt!

3. Check, carefully, Credit Report: These days, there are many ways, to obtain, free, a copy of your Credit Report (Federal Law states you are entitled, to receive it, at no – cost, once per year). Obtain yours, and carefully, review it thoroughly, to ensure accuracy, and/ or, if there is, anything, concerning, about it. If there is, address it, and correct it, before you begin! In addition, if you feel uncomfortable, doing so, take advantage of available professionals.

4. Hire the right, mortgage banker, for you, and your needs: Ask for recommendations, in this area, and hire, the right company, and individual, to meet and address, your needs, concerns, priorities, and perceptions! All mortgage bankers, are not, created equal!

5. Be certain, the home assesses: Carefully, review, a carefully created, professionally designed, Competitive Market Analysis, and use that, as a guide, when buying a particular house! If, your home, doesn’t assess, for, what is needed, and necessary, you won’t be able to get the size, mortgage, you may seek, and/ or need! Remember, there is usually, a specific, down – payment, required, for every, type of loan!

Make home ownership, and the process, leading, to it, far less stressful! Doesn’t that, make sense?