To Do List For New Homebuyers
April 30, 2018
If you’re considering buying a unit in Altana apartments or you’re purchasing property in another area, you’ll need to know certain things to do as a homebuyer before you buy your property. Otherwise you’ll be unprepared for this gargantuan investment and the last thing you need is to be caught off guard by some unexpected issue that you aren’t prepared for.
As you know, buying property and making such a large investment can be a difficult and nervousness inducing experience, and this is especially true for the brand-new, first time property buyer. In fact for 99.9% of the population, this is going to be the largest purchase they’ll make in their life – unless they end up buying a bigger home or piece of property at a later date.
The home buying process can be scary to say the least. You’ll hear unfamiliar lingo, learn about expenses that may surprise you, and other potential areas that can bring serious stress to your life. To help you go through this somewhat difficult journey without experiencing too much stress, we’ve put together some powerful tips to help you save money and get through the home buying process as smoothly as possible.
Begin Putting Money Aside for Your Down Payment as Early as Possible
Even though some lenders will occasionally allow you to put a little money down on your house, typically speaking you’ll have to put roughly 20% down in order to qualify for a loan. So if you do not have this amount saved up when you begin shopping for your new house, you’ll have a difficult time getting a mortgage so you might as well prepare in advance before even attempting to approach a loan officer or contacting a real estate agent to help you find your home.
On average, you should have an estimate of what you’d be able to spend on a new home. So as an example, if you’re willing to pay $300,000 for your house, you should expect to put $60,000 down for your down payment. That means you’ll need to qualify for a $240,000 mortgage, and this might not be the easiest thing to accomplish if you aren’t thoroughly prepared.
On the other hand, you can always use this handy down payment calculator to determine how much you’ll need in different scenarios. So use this tool and other information at hand to discover how much your down payment will actually be. And if you’ve just begun thinking about buying a home, you might as well start saving now and put aside as much as you can because your down payment is definitely going to cost a pretty penny so it’s good to have this money available when you begin shopping for your dream home.
Begin Monitoring Your Credit Score
Buying a new home is a major step toward adulthood for many brand-new couples and young professionals. If you’re young and thinking about buying a new home for the first time, you have to make sure your credit is in order. Because if it isn’t, you may not qualify for a mortgage and you’ll find it nearly impossible to purchase your dream home, so you might as well get your financial house in order now before you end up getting rejected by mortgage lender after mortgage lender. It can be a really disheartening process and we’d rather you avoid that at all costs when possible.
So run your credit report with all three credit bureaus. If you don’t know who they are, their names are Experian, Transunion and Equifax. After you’ve checked your credit with all three credit bureaus, look for any inconsistencies and errors and dispute them because they could actually hurt your credit score. Look to see if you have any unpaid loans or things that you may have accidentally missed and take steps to clear them up. And if you have used too much credit and it’s bogging down your credit score, begin paying your loans off to look like a better candidate for a mortgage.
Ultimately, the higher your credit score is the better. And if you want to get a low interest rate, you’ll need to boost your score into the 750 to 850 range, which will certainly help you qualify for a mortgage as long as you can handle the financial responsibility.
Get a Preapproval Letter from a Mortgage Company
Next, it’s time to really get serious. You’ve fixed your credit score and you saved enough money for a down payment. Now it’s time to approach mortgage companies and let them know the type of house you plan to buy and the maximum amount you plan to spend. They will run you through their credit process and determine if you are a candidate for the maximum amount of loan you’re looking to receive.
If so, you can get prequalified and the mortgage lender will provide you with a preapproval letter. Once you have this vital piece of paper in your hands, you can begin shopping around for your ideal dream home and you’ll look like an excellent candidate with the sellers and their real estate agent because they’ll know you’re qualified because the mortgage company already made a commitment to you.
More important than anything else, you want to let sellers know that you are serious about buying their home. In today’s market where there are many buyers and fewer houses for sale, it’s up to you to look like the best choice, because sellers are going to have many potential buyers bidding on their homes and they’re going to choose the buyer with the best chance at being approved for a mortgage. If you show up preapproved, you’ll look like the perfect candidate as long as they are willing to accept your offer.
First Time Homebuyers Should Consider Altana Apartments
If you’re buying your first apartment in Glendale, CA, you should consider living luxuriously in Altana apartments. The description on their website states that their “Resort style living includes expensive rooftop pools, lounge decks and landscape courtyards. Residences are appointed with nine to twelve foot ceilings, stainless steel appliances, and beautiful quartz countertops.” Check out their floorplans now to better get to know these stunning apartments.