For buyers, that means more choices and better deals. However, those same tumultuous years can also teach buyers a lesson: Make smart buying decisions and be wise with your finances.
Impulsive buying is never a good idea when it comes to a purchase as significant as a home, but it was something of a trend at the height of the mid-2000s. Now, with banks lending far more cautiously, you need to be absolutely certain that your finances are in order - and healthy - to be able to get the best deal on your purchase.
There are a number of steps you can take to get ready to buy a home, and you might need to work on them simultaneously.
Read further for the steps to take.
One of the first steps is to consider that you'll need to start saving, if you haven't already, but you'll also need to review your credit score and do what you can to either maintain it or work toward healthier credit. Both of these tasks will help make the home-buying process better for you.
Your credit is an important factor in determining the terms under which you can get a mortgage. Broadly speaking, the better your credit is, the more positively you'll be viewed by lenders - and that can lead to better interest rates. And because you'll be paying off your home for years to come, it's important to get the best rate possible.
If your credit health needs some work, start taking action immediately (click here to begin to monitor and repair your credit). Paying bills on time, reducing your overall debt and limiting new credit inquiries can all help to build your credit - but be patient as it can take time for your positive actions to take effect. Nevertheless, the sooner you make the effort, the sooner you'll see results.
- Making a prudent decision about buying a house comes down to an honest assessment of what you can afford.
Buying a home is a complex process, but one that is ultimately very rewarding when done right. By organizing your finances well in advance, you'll help set yourself up for success.
Start by checking your credit report. You're entitled to one free check of your report, from several credit reporting agencies every year. As much as you need to check your report to find out what shape your credit is in, it's also essential to review it for inaccuracies or fraudulent activity, both of which can have a negative impact on your score.
A really great way to begin checking your credit scores and to see what is on your credit is to sign up with a credit monitoring company.
Credit Monitoring Program.
Call me if you have questions or need guidance as to how to most quickly get a credit approval letter into your hands.