Useful Tips to Purchase a House by Cory Ruppersberger
Buying a house is the biggest financial transaction you will ever make. That’s why first time doing it right is very important. You have to follow a set of rules and regulations before buying a house. Right, Knowledge can start realizing your homeowner dreams in the fast and easy way. Here are some tips shared by Cory Ruppersberger to purchase a house without any hassle.
Strengthen your credit: You should have higher FICO score to qualify for the better interest rate. Your FICO rate should be 300 to 850 and you would be eligible for the interest rate which will be less from your pocket. Lower the interest more you save over the life of the loan. To show lenders your credit history gets a free copy of your credit report. You should pay off credit card and resolve any credit disputes to get the higher score which will give you great 25%reduction however a low score can cause a significant increase in your interest rates.
Get a Pre-approved loan: Before hiring a real estate agent, you should apply to several lenders within two week period so that the inquiries do not damage your credit score. Get a fair idea about for how many loans you are qualifying for and what you can afford. Green light was given to the lenders who get pre-approved loans.
Shop for your mortgage: Shop for a mortgage before deciding on a house seems to be little awkward however it can be beneficial for one overriding reason. You will know exactly how much you can lend before you buy your home. It will be a smart move as you will be able to know whether a home is in your budget or not.
Find out Ratios used by lenders: Lenders mostly use “28 and 36” ratio to determine if you qualify for a loan. Your intended housing expenses must cover 28% of your gross income before you pay taxes. Monthly expenditures on your outstanding debts, when combined with your housing expenses, must not exceed 36% of your gross income.
Check out First-time buyers programs if you qualify as these have much lower down payment requirements. These programs are offered by various states and local governments. You can ask your broker or human resource department for specifics regarding borrowing those assets.
Cory Ruppersberger is a successful business entrepreneur and owner of a very successful mortgage lending company in Columbia MD called Best Loan Choice, Inc. and helping several people to achieve their dreams of being a homeowner.