Five steps to happy house hunting

Five steps to happy house hunting

You have decided that you want to purchase a home!  The next step is to figure out where you would like to live or most important where you can afford to live. We all have big dreams of living in the suburbs, but not all of us can afford to live there, at least when you we are trying to buy a first home with limited resources.

Once you've figured out where you want to live or can afford to live — and how much you'll need to earn to afford a house, assuming you'll make a 3 to 20 percent down payment — follow these steps to help ensure your house hunt goes smoothly:

1. Give yourself a credit check. Once you've made the decision, check your credit. Your credit score is one of the most important factors lenders will look at to qualify you for a mortgage, yet 6 in 10 Americans don’t know exactly what their credit score is.  This is a critical three-digit number that you can get for free in less than five minutes. You can order your free score from www.creditKarma.com, Credit.com Keep in mind, however, that scores may differ between these platforms, depending on the algorithm each uses to determine your score, but you will at least get an indication of your standing.  A free copy of your credit report can be obtained from each one of the major credit reporting companies (Equifax, Experian and TransUnion) at www.annualcreditreport.com. Check your report for any mistakes, unpaid accounts or collections before applying for a loan. Correct errors and try to improve your score before putting in the application.

2. Stick to your limits. Have a budget and figure out how much you're able to spend. Keep in mind the maximum price you can afford — and don't look at houses above that price point.

3. Understand your needs vs. your wants. Before starting the hunt, make a list of what you're looking for in a house. While you may want a Jacuzzi, you may really need a room for a home office.

4. Shop around for a loan. Banks offer different interest rates, and you want the lowest one you can get. Look at online banks as well as brick-and-mortars. Lower mortgage rates will help to reduce your monthly payments and allow you to qualify for larger loans. That way, even if you can't move to a less-expensive area, you may be able to afford a pricier home. That's good news this spring, as home prices may rise due to a record low supply of homes for sale.

5.  Once you’ve obtained a pre-approval from a lender, contact me here or here, you may also call me at 508-730-8925 or email me at cristinaprealtor@gmail.com and I’ll be happy to house hunt with you!