If you are in the market for a new home, this is an exciting time for you, but it also often is accompanied by some anxiety and stress. Even someone who has bought and sold several homes can become stressed out by the buying process. To lessen the stress of finding the perfect home and buying it, here are a few tips to think about.
Before you head out and start looking at houses, your financial picture needs to be looking its best. This can start many months or even a year before you look for a house. Take a look at a current credit report and make sure there are no errors on it. If there are, fix them as quickly as possible as these can reduce your credit score unfairly. You really want to shoot for a credit score above 700, although it isn't impossible to buy a home with a lower score. However, you tend to get a better loan with a lower interest rate if you have a strong credit score. Also, don't change jobs or open up a new credit card account in the months prior to buying a home. You want to paint a picture of responsibility, and frugal behavior is key.
Of course, you also will want to figure out how much house you can afford. This is dependent on the amount of money you have saved for a down payment, as well as your monthly income and overall finances. Obtaining pre-approval for a loan is important as well, and lenders will look over your finances carefully to determine how large of a loan you will be able to handle. Often a lender will not approve you for a loan that requires you to designate more than 30 percent of your monthly income toward house payments.
It is also good to think about what type of mortgage you wish to have, as these carry different rates of interest and terms. Some loans have fixed rates of interest, others have variable rates and still others are a combination of both. The fixed-rate mortgages are good options if you plan on staying in the home for many years. A variable-rate loan might have a very low rate of interest initially but can adjust year to year and definitely can adjust higher when interest rates go up. A hybrid of these two would be a loan that is fixed for three to five years and then it starts to vary. The variable loans can be a good option for those who don't plan on living in the home for a long time, as you can get a lower rate and pay less each month.
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.
For those interested in finding homes for sale in San Ramon, Pleasanton, Dublin, Livermore or anywhere else in Contra Costa County or Alameda County, it would be wise to find a real estate firm that concentrates its efforts in the East Bay area, such as the team at 1stInSite.com. Their experts can locate homes and commercial buildings throughout the East Bay area that fit your needs and budget.
Before you head out and start looking at houses, your financial picture needs to be looking its best. This can start many months or even a year before you look for a house. Take a look at a current credit report and make sure there are no errors on it. If there are, fix them as quickly as possible as these can reduce your credit score unfairly. You really want to shoot for a credit score above 700, although it isn't impossible to buy a home with a lower score. However, you tend to get a better loan with a lower interest rate if you have a strong credit score. Also, don't change jobs or open up a new credit card account in the months prior to buying a home. You want to paint a picture of responsibility, and frugal behavior is key.
Of course, you also will want to figure out how much house you can afford. This is dependent on the amount of money you have saved for a down payment, as well as your monthly income and overall finances. Obtaining pre-approval for a loan is important as well, and lenders will look over your finances carefully to determine how large of a loan you will be able to handle. Often a lender will not approve you for a loan that requires you to designate more than 30 percent of your monthly income toward house payments.
It is also good to think about what type of mortgage you wish to have, as these carry different rates of interest and terms. Some loans have fixed rates of interest, others have variable rates and still others are a combination of both. The fixed-rate mortgages are good options if you plan on staying in the home for many years. A variable-rate loan might have a very low rate of interest initially but can adjust year to year and definitely can adjust higher when interest rates go up. A hybrid of these two would be a loan that is fixed for three to five years and then it starts to vary. The variable loans can be a good option for those who don't plan on living in the home for a long time, as you can get a lower rate and pay less each month.
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.
For those interested in finding homes for sale in San Ramon, Pleasanton, Dublin, Livermore or anywhere else in Contra Costa County or Alameda County, it would be wise to find a real estate firm that concentrates its efforts in the East Bay area, such as the team at 1stInSite.com. Their experts can locate homes and commercial buildings throughout the East Bay area that fit your needs and budget.
About the Author:
Madeleine Glazier loves blogging about the real estate industry. If you are looking for Livermore real estate agents, or to discover Pleasanton CA real estate agents, please check out the 1stInsite.com website today.
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