Buyers tip of the week!!

If you think that this year, or even 2013 might be your time to buy, there are steps you can take now to get ready.

You will need to take a hard look at your financial picture and learn about getting a mortgage. What types of loan products are best for you? What is required to get the best possible loan? How does your credit score affect it? What are the current mortgage rates? How much can you afford today? Tomorrow?
What you can afford will likely dictate the type of home you buy (condo or house, fixer upper or a gut renovation) and where you buy (prime school district or the up-and-coming neighborhood). But, before you start dreaming about your fancy new digs, you have some important financial analysis to do. Analyzing your complete financial picture will reveal a lot as you consider home ownership.

The amount a bank will loan you, and the subsequent rate it charges for that loan, will be based on your entire financial picture.

The following examples can create red flags that will require you to do some financial homework:

•Recently financing a new car year may have a negative impact on credit.
•Not enough savings because banks require reservemoney, in addition to a sizable down payment.
•A newly self-employed person likely needs two years of work to be able to qualify.
•One late credit card payment can send your credit score below an acceptable number.
•Personal things like a recent divorce with shared debt can get in the way. As a result of this process, you will likely have some financial homeworkto do.

In order to do this analysis, you’ll need to hand over all of your financial information to a mortgage broker or bank. This includes, but is not limited to W2s or 1099s, six months of bank statements, proof of current income, copies of tax returns, and brokerage account statements. At the end of this exercise, you will be pre-approved for a loan. This will tell you how much house you can afford.

Ask yourself the hard questions and do your financial homework
When to do it: After you’ve been pre-approved. Once you’ve gone through the approval process, you know where you stand. Some people will be in great shape and ready to start shopping tomorrow. Others may need to save more money, fix their credit score, or hold off until they get that much anticipated raise next year. This is the time to decide if home ownership is the best for you right now.
Take stock of your situation and ask yourself some tough questions. Do you love your job and do you plan to be there for the next five years? Is your income and your job situation stable? Do you really want to put down roots in this area or are you itching to be closer to (or further away from) family?
Can you commit to at least five years in a new home? Are you in a relationship or do you plan on being in one? Would you want to go into financial business with that person today? In one year? Do you plan on having children?

I hope this article helps and as always please feel free to call,text or email me with any questions you may have. It is the best buyers market in years!! Don’t miss it!!!

As always enjoy!!
Laura A Goldberg ABR,GRI,SFR,BPOR E-pro
Classic Properties Realty
Cell/Text 352-327-2997
Fax: 866-591-3002 toll free
I am passionate about Real Estate !!

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