Very few people pay cash for a home. The rest of us need some financing – some more than others! So, how are you going to pay for your new home in College Station? Before you consider buying a new home you must consider how you are going to pay for it. How much down payment is required? What will the interest rate be? How long can you finance the property – 5 year, 15 years, 20 years or 30 years? Lets talk about getting your financial house in order.
Months before you even start LOOKING for a new home, get a copy of your credit report. Make sure the information on your report is correct. Sometimes errors are made and it will take a while to get it all resolved – sometimes months! Get a copy of your credit report from one of the reporting agencies (Experian) or ask a mortgage lender to help you out and get the process started. We’ll be glad to give you a reference or two.
When you are sure your credit report is correct it is time to look at your credit scores. Your mortgage lender will get a credit report with three scores. They will use the middle score. Is your score in the 800’s? WOW!!! Is your score 720? Great job! A high credit score and you’ll get the best interest rates. Is your score in the 600’s? Be sure to talk with a reputable lender that your agent has worked with before. You will need some help getting the financing you need to purchase. Yes, it can be done – it just isn’t as easy. Is your score below 600? Talk with a lender and get to work to raise that score.
So your credit score is not as high as you expected? Time to talk with a great local mortgage company to help you figure out how to improve your score even if it takes a while to get it up to an acceptable score.
Lenders want to see that you are NOT spending all you make. Lenders want to see that you are living within your means, putting a little money away each month for emergencies (a new roof…), pay your bills on time, don’t have lots of credit cards, and have 3-6 months in cash available. Put money into your retirement accounts. Don’t charge anything! Don’t go buy a new car, new furniture or appliances. Remember real estate is a great way for you to build for the future.