For generations, many of us, considered, owning a home, of one’s own, to be a major, significant component/ part, of the so – called, American Dream! However, after, over 15 years, as a Licensed Real Estate Salesperson, in the State of New York, I have observed, for most, the process, and period, involved, in trying to accomplish this goal, is, too often, an anxious, challenging one! Therefore, wouldn’t it make sense, if possible, for potential home buyers, to proceed, using these 6 steps? With that in mind, this article will attempt to, briefly, consider, examine, and review, what this means and represents, and why, if used, wisely, might make this period, far – less, stressful!
1. Pre – qualify/ Pre – approval: Before, beginning, this quest, it is smart, and time – saving, as well, as stress – reducing, for a potential buyer, to consult, with a mortgage professional, and, ensure, he qualifies, for a loan. However, it is, even, wiser, to obtain a pre – approval, which means, the only, remaining step, is ensuring, the subject – house, appraises, for the necessary amount. What could be more stressful, than shopping, and finding, a great home, of one’s dreams, and, then, being, unable to obtain it, for lack of doing so?
2. Fix/ repair Credit, first: Before, proceeding, your professional adviser, should let you know, any issues, with your credit history, etc. Before proceeding, forward, it is wise, and effective/ efficient, to fix any potential obstacles/ issues, and repair your, overall, credit!
3. Pay – down, other debt: Lenders, generally, use a series of financial formulas, many of which, strongly, factor – in, your overall debt, as well as what, you might be able to afford, for your housing component, of this! Most recommend, a potential buyer, proceeds, to pay – down, other debt, prior to attempting to obtain, any housing – oriented loan!
4. Build – up down – payment: In most, Conventional Mortgages, an individual, receives the best rates and other terms, when/ if, he pays – down, a significant percentage of the cost of the house purchase. In most cases, for a single – family house, 20% is the magic percentage, required, and recommended!
5. Gather reserves: Knowledgable buyers. know, and understand, which reserves, might make home ownership, a less stressful, more seamless, process! Therefore, doesn’t it make sense, to put – together, the necessary, financial reserves, so there won’t be any, undesirable responses!
6. Cooperate with Mortgage Banker: When you, work together, with your Mortgage Banker, and proceed, as – a – team, the process, goes more smoothly, etc! Have a thorough, discussion, from the onset, so you are aware of all requirements, and what the lender, many need, from you, in terms of paperwork, etc, and, if/ when, requested, supply these, expeditiously!
Achieve your dream house, by being, as prepared, as possible, and ready, to address, and overcome, any, and, all obstacles! Will you do, what’s in your best interests?