8 Most Important Steps To Do Before Buying Homes for Sale Part 2

In these series of blogs where I will guide you on a step-by-step process in buying homes for sale, I combined steps 2 and 3 since they are pre-requisites of each other. Having the right knowledge on what to do next in buying homes for sale will save you lots of time, money and will help you acquire the house of your dream like a pro.

STEP 2 – GET YOUR CREDIT RATING "credit score"
Credit Score is an important number if you will be acquiring your home through loan or mortgage. Banks and credit card companies use this to determine if they will lend you money. It is also used to determine your interest rate on loans and credit cards. Credit Bureaus or Annual Credit Report Service provides you with credit scores upon purchase.
A credit score usually ranges from 340 being the worse to 820 being the best score. If your score is lower than you expect it, you can request for a credit report to find out if there are any errors. You can improve your credit score by paying your bills in a timely manner and making sure of eliminating consumer debt.

When buying homes for sale, first be familiar with the mortgage process. It is ideal to get pre-approved prior to searching for your dream home. Most people often neglect this very crucial step. Pre-qualified is not the same as pre-approved. In a hot market, you’re going to want to go the extra step and get pre-approved for a home loan before you make an offer.
Getting pre-approved sometimes gives you an edge over other buyers especially if the real estate property that you are looking to buy is a prime property. This means that having been pre-approved is a guarantee to the seller that you have funds and they are actually available.
Ask a lender to prepare a letter of prequalification which states that your initial financial and credit information has been reviewed. This will put you on top of the seller’s list when presenting an offer.
As soon as you have your credit rating or credit picture in hand and being aware of your credit standing, deciding the next step or which way to proceed will be much easier for you.

Tomorrow: Step 5 — The Hunt Is On


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: