Avoid financing big-ticket items such as a shiny new car, expensive new furniture, or high end electronics.
Don't apply for new credit.
All these new things can really hurt your credit score & sometimes take
months to recover.
When trying to qualify for a home, only buy thenecessities with good old fashioned, hard earned cash.
Never close any long standing credit cards as this can also take a hit to your score.
Every credit score point counts!
2. Save up for your down.
Bonus check at work? Throw it in the bank.
Money back from the IRS? Save it.
Close a big deal @ work? Don't spend it.
Have a little extra income? Have some self-control - Keep it!
Still having a hard time saving money? Try cutting optional/additional
expenses to save more. For example, cutting out an $85 cable bill will save you $1,020 in a year.
Currently, for borrowers that qualify, as little as 5% down can help you avoid paying mortgage insurance - and that can save you hundreds monthly on your payment over traditional FHA loan programs.
Remember, every little bit helps you avoid higher interest rates or private mortgage insurance.
3. Pay Down / Off consumer debt.
When you carry a high balance on credit cards, it can take a massive toll on your credit score! Paying credit cards down to 30% of their credit line can give you as much as a 50 to 100 point boost in as little as 30 days.
If needed, we can get your credit file updated rapidly to get you into your home faster.
So when a bank is qualifying you for a mortgage, that credit card you paid off just gave you a better of a rate, helping you save more money.
4. Make sure you've got a solid job / business - Know it beforehand
If there is one thing a traditional bank doesn't like, it's instability.
Think about it - if you were a bank that was about to lend a perfect
stranger hundreds of thousands, if not millions of dollars - how would you feel about a borrower who always has new business ventures and a spotty job history? Most likely you'd be a bit uneasy.
To a traditional lender a solid credit score and a large down does not mean guaranteed financing.
Finding out about this early on with help reduce your stress level substantially.
Typically they look for 2 years in the same job or business. Show them a solid business and they will be glad to lend you the money.
But not everyone has cookie cutter employment either. If your income is a bit more sporadic there are still plenty of options.
If you're an Investor with a large down, then Stated Income is your friend - and yes I have it and it is a phenomenal program.
Please inquire within.
5. New Car or Property Ownership...Your choice - Need to know this
Do you want the fancy, expensive new car that all your friends will see you in?
Or would you rather have a nice home you can share memories with your family and build a foundation for your future?
If you chose property ownership, great choice!
Cars get old, immediately lose value and start breaking down the second your drive them off the lot. The opposite is true for real estate.
When you invest in real estate, in most areas your property starts growing in value almost immediately.
A $500 car payment can push the dream of home ownership right out the window.
That means your fancy new car will only let you qualify for a one bedroom condo for your family of 5. So make the smart choice!
I can run multiple scenarios to show you how to reach your real estate goals.
This makes your life so much easier - because now you know exactly what you can afford.
Like so many other happy clients I have - I will help you get into the home of your dreams!
Preparing to find your home
1. Make a list - of the things you want in a home. Pool or no pool? 2 story or One. Be sure of what you want, but be flexible - not every home will be perfect. Decide on whats important and what you're willing to budge on.
2. Call Dan to setup an appointment - Let's get you approved! Pre-qualifying clients since 2004 is my specialty! I know what banks want & what they don't want, that's the beauty of working with a broker. Talk to me first & I will find a way to help you reach your real estate goals.
3. Next - Gather your financial records- Grab your bank statements, paycheck stubs & tax returns before your first meeting with me. On your first appointment, I'll ask you some questions about your income, assets & credit history. Then, I'll shop it with my preferred lenders and get you fully pre-approved with confidence!
4. Check your email - Next either myself or a Realtor partner will send you an email with listings for all your current prospect homes. Which ones do you absolutely have to see?
5. Sit back and let me do the rest!
OK. Found the Dream Home
Dan got me a Rockin' Rate
I Got the keys
So, What's next?
1. Give your forwarding address to the post office, usually two to four weeks ahead of the move.
2. Notify your credit card companies, magazine subscriptions, and bank of the change of address.
3. Develop a list of friends, relatives, and business colleagues who need to be notified of the move.
4. Arrange to have utilities disconnected at your old home and connected at your new one.
5. Cancel the newspaper.
6. Check insurance coverage for moved items. Usually movers only cover what they pack.
7. Clean out appliances and prepare them for moving, if applicable.
8. Note the weight of the goods you’ll have moved, since long-distance moves are usually billed according to weight. Watch for movers that use excessive padding to add weight.
9. Check with your condo or co-op about restrictions on using the elevator or particular exits.
10. Have a first open box with the things you’ll need most—toilet paper, soap, trash bags, scissors, hammer, screwdriver, pencils and paper, cups and plates, water, snacks, and toothpaste.