Number Two: Money matters. If you’re considering a mortgage, shore up your credit and get a copy of
your credit report.

This was the MOST important thing you could do to secure credit 2 years ago. A good credit score could get you a loan. Now, it is just one of the things you need to do. It is very important that your credit score is accurate, and decent.

However, this is not the only important issue as it once was. What you need to consider, (as you alway had) is if you can afford the payments you need to make with the income you have. However, not only do you need to be comfortable with the payment the banks want to make sure that you can make the payment as well. Seems logical, but a couple of years ago, the banks didn’t really care if you could make the payments. They just wanted a good credit score.

But as opposed to a few years ago,
To buy a house today, you need

1. 1. a downpayment (there are some exceptions to this, but they have been dwindling),
2. 2. a verifiable job or income source,
3. 3. and good credit.

Gone are the days where you could buy a house for nothing. Can you believe these bankers, just because of a few billion dollars are now wanting the home buyers of America to have have money, and some skin in the game?  Ridiculous!!

Stay tuned for part 3….and I have a feeling it will be a long one.

Ten Rules to Follow When Buying A Home

1. Make a commitment. Commit yourself to your new home for at least a couple of years
before making your next move.
2. Money matters. If you’re considering a mortgage, shore up your credit and get a copy of
your credit report.
3. Get pre-approved. Save yourself the time and grief of looking at houses you can’t afford.
4. Determine how large your mortgage can be. Explore different loan options to determine
what is best for you.
5. Decide what (and where) you want to buy. Prioritize your needs (i.e., location, schools,
amenities).
6. Consider your re-sale value. Even if you don’t have school-aged kids, a strong school
district is a good thing.
7. Do your homework. Bid based on sales trends of similar homes in the neighborhood.
8. Calculate the hidden costs. Property taxes, insurance, maintenance and association
fees can impact your wallet over time.
9. Don’t be house poor. Double and triple check to be sure you haven’t maxed yourself out
on the cost of your home and left nothing for maintenance, etc.
10. Get help. Hire a REALTOR® to get the most for your money. It pays to have
someone looking out for your interests. (note: when it says Hire a Realtor, make sure you sign a buyers service contract with the Realtor that spells out the Realtor’s responsibilities to you.)