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Preparing to buy
Now that you've decided to buy a home, you're probably getting excited about looking at houses. Before you do, we recommend that you do some homework now, so you're not disappointed later.
Start By Saving Money: If you haven't already, start saving toward your down payment and for other home purchasing costs like closing costs, etc. In addition, try to pay down your existing debt, especially high interest debt such as credit cards.
Start a Financial File: This File should consist of all your important financial documents. Start by making copies of all your financial statements such as bank accounts, investments, credit cards, auto loans, recent pay stubs and two years of tax returns.
Check Your Credit Score: Credit scores range between 400 and 800. A score over 620 is considered good; over 700 is considered premium. The higher your credit score the better your chances are of obtaining a lower interest rate on your loan. You'll see how much impact that will have on your payment and home-shopping options.
Get Pre-Approved By A Lender: There are two key benefits to getting pre-approved. First, you will know how much you can afford. Second, when you find that dream home, you'll be in a better position than other buyer's who are less prepared.
Your lender will require the following information:
- Your Career status
- Household Income
- Monthly debt service
- Available cash
- Assets and Liabilities
Don't Do Anything To Upset Your Credit Rating: Now is not a good time to change careers, move your money around, or buy big-ticket items. Lenders like stability. So, if you are considering any major changes it pays to meet with a lender and ask them how you should proceed before making those changes!
Ask a Greater Phoenix real estate agent to recommend a lender that can give you even more advice on how to be prepared.
For more information about lending, contact one of our Preferred Lenders
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