Thursday, January 2, 2014

What You Should Do Before Buying A House

By Madeleine Glazier


Buying a house can be a bit stressful, and whether it's your first time buying a home or you've been through the process many times, there's no getting around the fact that buying real estate requires some work. If you are ready to buy, make it easier on yourself by completing some of the following tasks before you look for that perfect property.

Your first step should be to get your finances in order. Check your credit score and make sure it is a solid number. Anything about 700 or higher is very good for potential home buyers. Remember that the months preceding a home buy are not the time to start opening a bunch of credit card accounts or taking out loans for other items. The cleaner your finances look, the better chance you have of securing a good loan because you simply look like a better risk to a lender.

Don't set your budget too high, either. You really need to feel comfortable with that monthly mortgage payment. Many lenders won't approve you for a home loan if the mortgage payment is 30% or more of your monthly budget. It is also wise, especially for the first-time buyer, to get pre-approved as this make the buying process much easier. So visit a lender before you call up a realtor and start looking.

When it comes to mortgages, there are several different kinds, and you will need to study the different types and what will best suit your needs. You can choose from loans with rates that are variable or fixed. A fixed loan, such as a 30-year fixed, means that the interest rate will stay the same throughout the duration of your loan. This can be a great option if you can snag a great rate and plan on living in the home for many years. A variable rate can go up and down every year, which means your payment will go up and down every year. Variable rates often are lower than fixed, so these can be a good idea for someone who doesn't plan on staying in the home for many years. There are also loans that are fixed for a few years and then vary, and the initial rate usually is lower than a fixed rate.

You also need to find a house that you really love, and that means it has to offer the amenities you need and want. Bring a list to your realtor, so he or she will have a solid idea about what items you absolutely must have and what items you would really like to have. While you might not get it all, your realtor will find a better match if he has a clearer picture of your needs, likes and dislikes.

If you are searching for Livermore real estate, San Ramon real estate, Pleasanton real estate or perhaps another area in Alameda or Contra Costa County, you will need to find a real estate company that specializes in properties in these areas, such as 1stInSite.com. They can help you buy or sell a home, as well as purchasing investment properties and commercial properties.




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