Friday, October 7, 2016

Financial Tips before Applying For Mortgage as Lexington Homebuyer

Financial tips for Lexington homebuyers
If you are ready to buy a Lexington home, congratulations! This fall season is a wonderful time to do so in the Lexington real estate market. Mortgage rates are still near historic lows, but experts predict they will begin increasing sooner than later. Home equity has returned for the majority of homeowners. Rent prices continue to soar. Now is a great time to buy!

As your Lexington real estate agent, I recommend that the first step you take in the home-buying process is qualifying for a mortgage loan. Pre-qualified buyers are taken more seriously by sellers, because the seller knows you can afford their home, and because the home sale will go through faster. 

Also, pre-qualified buyers know exactly what they can afford, so it’s also a perk for you. You don’t want to fall in love with a Lexington home that is out of your price range!

While many Lexington homebuyers stress about the mortgage process, numerous studies show that the qualifications are not as strict as most buyers think. There are many down payment options, so if you don’t have 20 percent to put down, you’ve got other options! You’ve also got options if your credit score is lower than you’d like it to be.

Still, there are certain steps you can take when going into the mortgage application process that will make you a better candidate. Here are a few do’s and don’ts to keep in mind:
  • Do check your credit reports and credit score. The higher your score, the better! Check your credit reports early, even if you’re not quite ready to buy, because if you find errors on them, it takes time to get them resolved. However, resolving these issues might raise your score to where it belongs.
  • Don’t take on new credit/debt. This is true before you apply for a mortgage, and it remains true until after you officially close on your new Lexington home! That means that no time during your home-buying process should you buy a new car, plan a vacation, buy expensive furniture and so on.
  • Don’t make large deposits. Once you are in the mortgage process, don’t add large deposits of money that can’t be traced, such as a family loan or gift. Mortgage lenders will have to track where the money is coming from and it can create issues that delay the process.
  • Do stay in your job. Changing jobs during the mortgage process, or right before applying for a mortgage, is not a smart idea. Even changing positions within the same company can shake things up. Ask your employer if you can start after the closing date. You must have job stability in order to buy a home.
These are just some tips to get you started! As a Lexington real estate agent, I want the home-buying process to go as smoothly as possible for you. When ready to begin your home search, or if you have questions, contact me!

Theresa D'Antuono

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