High Country Real Estate Buying Tips

High Country Real Estate Buying tips

Here are a few High Country real estate buying tips. Are you armed with the knowledge to buy a home? Hopefully, after you follow these tips and links you will be on your way to the purchase of your dream home. Let’s take a look at what the following tips can do for you, here is a list of things to consider before buying your first home.

Strengthen You Credit Score!

The higher your credit score, the lower your interest rate and your monthly payments.
Below 660 or 680, you will have to pay sizable fees or a higher down payment.
A score of 700 to 720 will get you a good deal and better rates on the market.
Pull your credit reports and be sure you’re not unfairly penalized for old, paid or settled debts.
Stop applying for new credit a year before you apply for financing.

Grab our free checklist for homebuyers so you don’t miss any important steps.

Figure Out How Much House You Can Afford!

For conventional loans, a safe formula is that home expenses should not exceed 28% of your gross monthly income.
If you’re using FHA financing, as almost one-fifth of buyers get FHA-insured loans, your home payment can’t exceed 31% of your monthly income.
Before you home shop, calculate the mortgage payment for the home in your intended price range, along with the increased expenses (such as taxes, insurance and utilities), then bank the difference between that and what you’re paying now.

Save For Down Payment and Closing Costs!

Depending on your credit and financing, you’ll typically need to save enough money to put anywhere from 3.5% to 20% down.
If you’re using FHA financing, then you need a score of 580 or higher.
Another cash expense: closing costs. Whatever your loan source, you’ll also need money to pay closing costs, which run (depending on where you live & the loan amount), from $3,000 to $6,000.

Build A Healthy Savings Account!

Your lender wants to see that you’re not living paycheck to paycheck. If you have three to five month’s worth of mortgage payments set aside, that makes you a much better loan candidate.
Improve your chances by: setting aside money every month. A good rule of thumb: on average you’ll spend 2.5% to 3% of your home’s value annually on upkeep, repairs and maintenance.

Get Pre-approved for a Mortgage!

Before the real home shopping begins, you want to get financing in place. Visit our in-house lender Jennifer Csora for more info. or go to their website Fidelity Bank Mortgage.
Improve your chances by: getting financing in place before you walk through the first house.