One of the most daunting aspects of purchasing a new home is deciding how to finance it. I have listed a few pointers that help simplify the steps you should take when you begin looking for a new house.
Get pre-approved. You want to be sure you are looking at homes you can afford. By getting pre-approved, you can be sure you are looking in the right range.. You can also put yourself in a better position to make a serious offer when you do find the right house. Unlike pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. By doing a thorough analysis of your actual spending power, you’ll be less likely to get in over your head.
Choose your mortgage carefully. FHA? VA? ARM? Fixed Rate?Find a mortgage that works best with your budget. Most prefer a fixed-rate 30 year mortgage. However, there are several options out there that may be a better fit for you. If you have any questions we have a great in-house underwriter through Gershman mortgage who can answer any question you may have.
Do your homework before bidding. Before you make an offer on a home, do some research on the sales trends of similar homes in the neighborhood with listing search engines like the one on my page. Consider especially sales of similar homes in the last three months. For instance, if homes have recently sold for 5 percent less than the asking price, your opening bid should probably be about 8 to 10 percent lower than what the seller is asking.