Five steps to consider before purchasing a property
Whether you have plans or considering it, here you will find the necessary information, so you are in the best condition to buy a home when you are ready.
At Park Place Realty we know that buying a home is many families dream, but sometimes they don't know where to get started. We enlisted 5 easy steps to consider when preparing to buy your new Home.
1. WHERE TO START
First, determine when (date) you want to buy your home, and how much money you can save for your down payment and other costs involved.
2. REVIEW YOUR CREDIT REPORTS
Review your credit reports and keep in mind your credit score. By reviewing these reports, you will be able to know your current credit status and see if there is any information that may affect your credit score.
Lenders look at credit reports and you should consider knowing yours as well.
3. INCREASE YOUR CREDIT HISTORY
Once you have reviewed your credit history, you will probably want to improve it before you apply for a mortgage loan, you could, for example, borrow the amount of money you can pay and make sure you make your payments on time. That will show lenders that you can pay off your debts and responsibly manage your credit.
4. PAY YOUR DEBT AND DO NOT GET NEW
If you have debts, consider reducing them. When applying for a mortgage, the lender evaluates how much debt the individual has compared to their income. So, do not get new loans or debts during the purchase, because it will affect your rating and the bank may deny your funding.
5. SAVE MONEY
While catching up on your debts, save money for the down payment and closing costs. If you have not already, open an account with a bank or credit union to keep all your savings in one place, preferably open the account 3 months prior to the purchase, since you will not be able to deposit money into your account days prior to your application.
The more funds you contribute to the down payment of the mortgage, the less you will have to pay over the duration of the loan, therefore, the lower your monthly payment.
IMPORTANT CONSIDERATIONS
Buy a home that is within your possibilities, it is important that you do not go into debt more than you are able to. Ideally, do not allocate more than 40% of your net income to the mortgage payment.
When choosing a home, keep your current and future needs in mind, a house that suits you well now, may not be suitable in the future.
Consider adding additional costs (taxes and closing costs) to the price of the property, and make sure you get support from and experience and professional Real Estate Agent.
When applying for a mortgage loan, there are three variables to consider:
I. The value of the house
II. The income and savings you have
III. Term and Interest Rate
Park Place Realty has more than 30 years of experience and trust in Las Vegas market, and a great team of professional agents await to advise and support you in this great decision.
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