Have you thought about or are you currently thinking about buying a home? Being married to Real Estate Agent and being a Mortgage Originator myself, we have a few recommendations as to what are great next steps. What most people do not realize is, there is work you can do before going out to look at homes.
CREDIT SCORE CHECK
Have you recently checked your credit score? You can receive a free credit report, one from each credit reporting agency: Equifax, Experian and TransUnion, per year. According to Experian a credit score between 800-850 means you have exceptional credit, 740-799 very good, 670-739 good, 580-669 fair, and 300-579 very poor. Knowing where you are with your credit will help you gauge how realistic obtaining lending could actually be.
DETERMINE WHAT YOU ARE COMFORTABLE SPENDING
Do you know how much you could afford in a monthly payment? Do you currently Rent? If you do, do you plan to expense the same value toward a mortgage, or do you plan to increase or decrease. Knowing the amount you desire to spend is helpful when working with a Loan Officer. When I am working on a pre-approval for a borrower, it is important for me to know what they are comfortable spending.
DO YOU HAVE CASH
Do you have liquid cash? I am not talking about investments, I am talking about cash you can access today. As part of the pre-approval process, I ask all my borrowers for a statement that verifies they have the funds needed for the earnest money and the down payment.
"What I can preapprove you for is different than what you can afford."