Although, some consider, owning a home, of one’s own, to be, an essential component, of the so – called, American Dream, far – too – often, there is a risk, of it becoming, a nightmare, instead! After, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I consistently, advice, my clients, and/ or, customers, to proceed, with their, eyes – wide – open, and ensuring, they do nothing, to hurt themselves, by making some sort of mistake (either, of, omission, or commission)! Therefore, before beginning their quest, it makes sense, to consider, many variables, especially, 5 specific ones, which I will attempt to discuss. With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, these.
1. Check credit report, and monitor and repair it, regularly, from the onset, and throughout, transaction process: Some believe they, merely, need a high, Credit Score, instead of understanding, there is, often, more involved, in terms of getting approved, for a Home Loan, and/ or, mortgage! Before, beginning, one’s house – hunt, wise, potential, qualified buyers, begin, by checking their Credit Report, to repair it, and correct, any errors, or inconsistencies. This can be done, on one’s own, and/ or, by consulting with a professional, in that area! In addition, continue to review it, consistently, throughout the transaction period!
2. Pay – down debt, but don’t close accounts: A few months, before beginning, looking, it is wise, to pay – down, your debt, as much as possible, but, avoiding, closing any accounts! The reason you want those, to remain open, is credit bureaus, factor – in, your debt, to available credit, ratio, seeking one, which is, lower than 30%, or, preferably, even – lower! In addition, non – home – debt, in relationship, to monthly income, must be, within, specific ranges!
3. Avoid any new debt: Avoid any new debt, even when it seems, attractive! For example, avoid the temptation, to accept, any store credit/ charges, in order, to receive, some sort of immediate savings/ benefits!
4. Pay all bills promptly: Lenders take credit history, very seriously! Pay every monthly bill, promptly, and, at above – minimum payment, amounts!
5. Speak to a recommended, quality, mortgage professional: Some seem to choose their mortgage broker/ banker, predominantly, based on rates offered. It’s important to realize, while a rate is important, choosing someone, who pre – approves, you, recommends the best options, and holds – your – hand, throughout, makes the transaction period, far – less stressful!
Proceeding wisely, when choosing to purchase a house, makes the process, go far more smoothly. Will you become a smarter buyer?