Take Care of These Tasks Before Closing On Your Dream Home.
Buying a home is a major financial decision that should not be taken lightly. With all the planning, saving, and searching that goes into buying a home, you may be feeling overwhelmed by the whole process. To ensure that you are ready to take this major life step, here are some of the things that you need to take care of first.
1) Improve Your Credit
According to Experian, you need a credit score of 740 or higher to qualify for the lowest interest rates on a home loan. Before you get ready to house hunt, check your credit score to see where you are. If you need to give your credit a boost, then try the following suggestions:
Pay your monthly bills on-time and in-full
Check your credit report regularly and report any errors you notice
Use your credit cards more prudently
Pay off debts like student loans as aggressively as possible
2) Get Preapproved
When you are preapproved for a mortgage, it tells sellers that you can buy their home. This means that you will be taken more seriously as a buyer and you will have a competitive edge over non-preapproved parties. To get preapproved, you will need to provide the following documents:
Proof of income (including tax returns, W-2s, recent pay stubs, etc.)
Proof of rent payments for the past year
Proof of assets
A statement of all your debts
3) Make a Home Wish List
Before you start visiting available properties, you need to have a good idea about what you are looking for in a home. This is why you should take the time to list all of your must-have features. Knowing exactly what you are looking for will help you make decisions faster, which is very important in a competitive real estate market.