Most Boring Parts of the Home-Buying
June is National Homeownership Month we're celebrating borrowers and lenders as we reimagine the mortgage experience to make homeownership possible.
That means working together with our industry partners to better understand the hopes and fears, the characteristics and challenges of current and future borrowers, with one goal in mind: to turn homebuyers' dreams into reality.
How to Deal: When all is said and done, buying a home is exciting—and a milestone to be celebrated. But if you expect each step of the process to be a thrill ride, we're here to tell you you're sorely mistaken.
In fact, between the rush of the hunt for the perfect place and the extreme satisfaction of crossing your threshold as a new homeowner, the rest of the home-buying process can be a bit of a slog.
There are many unglamorous parts of buying a home—some of which many consider downright boring. Do the words 'financial due diligence' make your eyelids feel heavy? Yeah, ours too.
But when you know what to expect and why, it’s a whole lot easier to deal. So pay attention to these three very mundane—but very important—parts of the home-buying process. We've outlined why they matter and how to get through them without losing your sanity.
1. Raising your credit score
Savvy home buyers know that a good credit score will allow them to lock in a good interest rate. But what if your credit score is in the gutter? Raising it can take some time—a year, if not more—but there are some strategies you can take to get it where it needs to be.
One of the easiest and most effective ways to bump up that credit score(besides paying all your bills on time, which you already do anyway, right?) is to avoid applying for any new credit—including personal loans, car loans or leases, and credit cards—for about one year before starting the home-buying process.
“Your credit gets pulled each time you apply for a loan of any type, which negatively impacts your credit score,” he says. And that can translate to a less favorable rate when it comes time to get a mortgage.
2. Securing a mortgage pre-approval
Once you’re satisfied with your credit, it’s time to shop for a mortgage lender who will ultimately help you buy a home. We won't lie: Shopping for a mortgage lender is not fun. It requires a number of steps and a lot of paperwork.
First, you’re going to want to inquire with different lenders to learn about their rates, programs, fees, and specials. You’ll also want to consider if you want to work with a mortgage broker, who will essentially shop home loans for you.
Once you’ve settled on where you want your loan to come from, it’s time to get that all-important pre-approval, which is a commitment from your lender to provide you with a home loan up to a certain amount. That will set your home-buying budget, and also show sellers that you are serious about buying when it comes time to put an offer in.
But the pre-approval process takes patience.
“Lenders require a host of documents to get you fully pre-approved, and often it comes down to minutiae such as explanations of small transactions in or out of your account.” The plus side is that once you have your pre-approval, you can largely check tedious mortgage tasks off the list.
3. Reading the fine print
Spoiler alert: You are going to be bombarded with financial, legal, and technical documents during the home-buying process—and unfortunately, it’s your job to read through all of it. Even if that sounds about as exciting as trudging through 'War and Peace,' don't skimp on the time it takes to understand the contracts you're signing.
The best way to get through all the painful paperwork is to know what to expect. Here are the three most important documents that are going to come your way:
Are you Ready, You've come to the right place, We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866.
#RealEstateForSale #Homeownership #UtahRealEstate #MorgageRates
Blog Archive2018-12-05 08:02:12
In 2019 Mortgage Payments to Jump 8.4%
Financing for Manufactured Homes Coming
Tale of Dual Markets
Need to Sell Your Home this Winter?
Buyers Pull Away From New-Home Market
Mortgage Loan Limits to Rise in 2019
Home Buyers and Sellers Should Watch in 2019
Townhouse Construction is Expected to Increase
Cities With Oldest, Youngest Homeowners
Overall, December is the Best Time to Buy a Home
Sluggish Home Sales came to an end in October
How to Pet-Proof Your House for the Holiday Guests
10 Great U.S. Ski Towns
A Way to Keep Aging Parents Close to Home
Huge Mistake to Take Your Home Off the Market for the Holidays
Best Mortgage Advice I've Heard, Ever
Tips to Help You Avoid a Rental Scam
Buying a Home?
Mortgage Rates Rise this Week
Cheaper the Home
Building Credit History From Scratch
How to Get a Mortgage Without Freaking Out
Home Prices Are Decelerating Not Falling
First-time Homebuyers Transition from Renting
Click here to see ALL articles.