“To Do” List for People Who Want to Buy a House (or Condo)

Tired of throwing away money on rent? Would you like to own your own home?

Use this short list to get ready:

TO DO LIST FOR HOMEBUYERS

  1.  Review your free annual credit report for errors that negatively impact your score.
  2.  Keep all credit accounts open — do not close any accounts.
  3. Pay down all credit card balances to below 50%. (Below 30% is even better.)

    A low balance-to-limit ratio on credit cards = a higher credit score

  4.  If you have cash at home, deposit it into a bank immediately. Cash is not allowed when getting a mortgage loan. The money must be seasoned and sourced in a bank.
  5.  Save for a down payment. You will need 3% to 3.5% of the purchase price, depending on loan type. Exceptions: The zero down VA loan for U.S. Veterans and the zero down USDA loan for properties in rural and semi-rural areas/non-metropolitan areas.
  6.  If you do not have sufficient funds for a down payment, explore the possibility of gift money from family.
  7.  Do not, under any circumstances, purchase a vehicle!

    Buy the house first; get the car afterward.

  8.  Do not quit your job; but if you are offered a better job or promotion opportunity, that is totally acceptable, because you are not cutting off your income source.
  9.  Seek out a mortgage broker for your financing. A mortgage broker can shop 30 wholesale lenders with only one credit pull.

    A mortgage broker has more loan options to choose from.

  10.  Get your pre-approval letter that shows what price you can purchase.

    Get pre-approved first; then go house shopping.

Home ownership represents security and stability. With some work and planning, the American Dream can be yours!

ApplyHere for a home loan in California or Washington state.
Carolyn Warren, Sr. Loan Officer/Mortgage Broker NMLS #1284134

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