Buying a house requires a lot of time and effort, but here are some steps that can help make the home buying process manageable and help you make the best decisions possible.
When inventory is low, sellers enjoy more control over prices and terms, and the area becomes a seller’s market.
When inventory increases in your area, you have a buyer’s market where sellers must get more serious about price reductions, credits and throw-ins. Of course, these averages don’t necessarily reflect demand in certain desirable and undesirable submarkets.
Before beginning the house hunting process, prospective home buyers should receive preapproval from one or more lenders to find out how much money they can borrow. Then, you have to consider additional costs of ownership such as taxes, utilities and insurance, buyers should determine a final budget they can comfortably afford.
Even if you do not have 20% to put down on your home, there are still options available for you to get a loan.
Borrowers with FICO scores as low as 690 are now getting conforming mortgage loans (those under $417,000).
If you are however putting down less then 20 percent down payment you will still pay private mortgage insurance, or PMI, until they hit the 20 percent to 25 percent equity mark.
There’s a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information and they’ve let you know how much you can afford and how much they will lend you. Being pre-approved will save you a lot of time and energy so you are not running around looking at houses you can’t afford.
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