Ser dueño de su propia casa puede ser uno de sus sueños. Y si estás leyedo esto, podrías estar pensando en actuar en tu sueño y prepárarte para comprar tu
How To Get Ready to Purchase A Home
Owning your own house may be one of your dreams and if you’re reading this post, you might be thinking to act on your dream and get ready to buy your house.
My name is Karen Pujols and I'm a REALTOR® in Florida for La Rosa Realty. I'm based in Central Florida and here to help with all your real estate questions and needs. This post is also available via Video on my YouTube Channel.
As the title mentions, this post is about how to get ready to purchase a house, and I want to share with you some things that you can start doing now, to get ready to buy it.
Number 1: CREDIT
Some dread talking about it, others are doing great but credit IS important when you're applying for mortgage loans. So, the first thing that you need to do is KNOW what your credit score is.
Now, I’m not sponsored or affiliated, I’ve been using this company for years now for my own personal use, and this is one way that you can know what your credit score is, by creating a free account with Credit Karma. There you will be able to see what your score is, and get updates as payments are made or things change. Another great thing about Credit Karma is that if your credit needs help, they give you tips on how to increase your score based on your specific needs. You can also dispute anything that's on your report that you feel is incorrect. It’s a pretty great company and it's free!
If you do find that you have poor credit, don't get discouraged, there are plenty of assistance programs for homebuyers.
Number 2: DEBT to INCOME Ratio
Mortgage Lenders are the ones to figure this out for you, but being aware of its existence and working towards having a healthy debt to income ratio will give you a higher possibility of getting approved for a mortgage.
The basic math is MONTHLY EXPENSES divided by GROSS INCOME. A good DTI would be 36%; it being higher doesn’t necessarily disqualify you for a mortgage, but it could mean having a higher interest rate if you're not denied a loan.
Number 3: MORTGAGE TYPES
- Conventional Loan usually require a FICO score of 620 or more and they do between 3-5 percent down payment and require private mortgage insurance.
- The Federal Housing Administration or FHA mortgage is more flexible, for 2019, their minimum FICO score is 580 for a 3.5% down payment. OR if your credit score is lower than 580, you could qualify with 10% down payment.
- If you're a US Veteran, with a VA Loan there's No down payment required and no mortgage insurance required. The FICO score depends on the lender that you choose to go with but it could vary from 580 to 620 minimum.
- The United States Department of Agriculture or USDA Loan doesn’t require a down payment, but the property you're looking to purchase must be in an approved rural area. The FICO required depends on the lender that you choose to go with but it could be between 620 and 680 minimum.
Number 4: PRE-APPROVAL LETTER
Once you have done your homework and you know where you stand with your financial numbers, you can apply to get a pre-approval for a mortgage. That way when you start your house search, you know exactly what the maximum is that you qualify for to purchase a home.
La Rosa Realty works with Union Home Mortgage. They’re amazing people and will guide you and help you through the entire loan process; from getting pre-approved to the closing.
Number 5: REALTOR®
Alright, so now that the technical part is over you can focus on the fun part. Looking for a REALTOR® to help you with your house search and showings. Write down what type of home you’d like to have and the city or area you'd like to live in. Then get ready to see houses and purchase your dream home.
There's nothing more exciting than closing on your dream home, and closings usually take about 30 days if everything goes well. But you're already ahead of the game because you worked to get pre-approved.
Let’s recap very quickly about what we went over. How do you get ready to purchase a home?
1. Know your credit score.
2. Know your debt to income ratio.
3. Be aware of the type of loans you could qualify for.
4. Apply for a mortgage loan pre-approval.
5. Start your house search.
If you have any questions about what I went over please don’t hesitate to reach out, I’m here to help. I would love to be your REALTOR® in your house hunt and put you in contact with our Home Union Mortgage Loan Officers to get your pre-approval process started. If you know someone that is looking to buy a house, share this post with them.
You can monitor your credit score with CREDIT KARMA: https://creditkarma.com
Learn more about Florida Housing Administration programs: https://www.hud.gov/federal_housing_administration
Learn more about Veteran's home buying benefits: https://www.benefits.va.gov/homeloans/
Learn more about USDA: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
S T A Y C O N N E C T E D
I’m a REALTOR® who works with home buyers and sellers. My enthusiasm for helping others and desire to make dreams reality help me connect with clients and provide them with the best service possibl....