Step to Buying a House.

Are you renting and thinking it is time to buy because you are tired of throwing your rent money out of the window ( So to speak ).

Step # 1:  Boost your credit score

Your credit or FICO score—which reflects how dependable you are at paying bills—directly affects the interest rate on your mortgage and the amount of your monthly payments.

Most lenders require a minimum score of 620 for a mortgage (the U.S. average is 687), so you’ll want to do everything to lift your number before applying for a mortgage. The things that drag down the score include carrying an excess of debt, missing bill payments, or applying for too much credit. So can plain old mistakes.

Step # 2:  Save, save, save

A home is almost certainly the biggest purchase you’ll ever make, and it’s a good idea to have a decent financial cushion for everything from a down payment to closing costs.

step # 3: Figure out your budget

Think carefully about your entire budget—from student loans to groceries to your monthly Netflix subscription—when considering buying a home.

You will not only be responsible for your mortgage payment but, you will also have homeowners insurance, repairs and upkeep as well as real estate taxes.

Step # 4: Find a good lender

You will need to find a good lender to determine your spending power.  I would advise to use a local Lender in your area that is not located in another state, one where you can visit them in their office if need be.

You will want a lender that you feel comfortable to work with, one that will answer your questions and respond promptly to your calls.

Step # 5:  Get pre-approved

Once you have selected your lender, make sure you get pre-approved and not just pre-qualified.  The difference is:

“Being pre-qualified means you’ve only discussed your finances with a broker,  “No one has actually reviewed your financials.”

Pre-approval means your mortgage broker knows concretely you can afford a home based on the financials you’ve provided.

Step # 6: Working with a Realtor

Once you have your pre-approval and know the price range you want to shop in, call Tomme Montana to start the process.

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