You’ve imagined it for years: buying your first real home with your significant other. This fairytale comes with its challenges, though, but you can mitigate them by knowing how the process works and considering advice offered by a Menifee real estate professional.
Check & Improve Your Credit Score
Credit score is a huge determinant for whether you can obtain a loan for your mortgage or not. FICO, in particular, is a type of credit score that is most commonly used by lenders across the country. To get approved, you generally need a score around 620. But if you wish to have doors opened to many lenders, strive for a credit score of 720.
If your score is not that great, you still have options for credit improvement. Start by gradually paying back any debt you owe, especially if it’s outstanding balances on your credit cards. This takes some time, though, so you need to remain patient. You also need to pay your bills on time, don’t pursue risky financial ventures, and consider opening up new credit cards once all balances are taken care of.
Assess How Much You Can Afford
When looking at real estate properties, you need to assess how much you can afford. After all, you don’t want to purchase your dream home, only to find out later that the massive mortgage payments and bills are not within your financial capabilities.
Consider what assets you have, including property, vehicles, and monthly income for both you and your partner. Compare these assets against expenses you have to pay for a home you are looking at, including mortgage, daily living expenses, bills, and closing costs.
Seek Professional Help
If you are having a tough time finding a home in your budget, get help from someone who specializes in real estate in Menifee, CA. He or she can lend their knowledge in favor of you finding the home of your dreams, and one that is reasonably priced. They’ll also assess the true value of the home so that you don’t overpay for a particular piece of property.
After a home is assessed and professionally inspected, your agent can help you close on the house. Insight is provided throughout every step, making sure you are comfortable with this impactful financial and life decision.
Your first home may seem like a surreal life moment, one that you’ve envisioned to bring happiness and a new lease on life. Take a systemic approach to the process, finding a home that meets your needs and affords you a life worth living.
7 ways to improve your credit score, bankrate.com
What is a Good Credit Score?, credit.com