LITTLE STEPS UP TO THE LEAP

November 27th, 2009

As you’ve already read in my column many times recently, conditions are ripe to become a homeowner, and it’s time to determine if you’re ready to make the leap.  While the price of the home is the largest factor, don’t forget about loan fees and closing costs, which add to your total financed amount.

Since banks are stricter in their lending, Step One is to polish up your credit report.  A higher score gives you more power when it comes to negotiating terms and interest rates.

Similarly, a larger down payment will positively affect your mortgage terms and reduce the amount you have to finance.  If you can’t manage 20% down, you will likely have to pay a monthly mortgage insurance premium.

Upon preapproval from a lender, you’ll know how much loan you qualify for, and how much is required for the down payment.  It’s best to secure preapproval before you begin looking at homes, especially since sellers will see your offer as a solid one worthy of consideration.  Talk to a mortgage lender at your bank or give us a call and we can provide you with several in the area.

In addition to newer fees being assessed on loans to less than stellar applicants, there are standard closing costs associated with the purchase, including appraisals, legal fees, credit reports and more.  All are included up front on your settlement statement and some may be negotiable.  Contact one of our REALTORS® today to get the ball rolling and let Don Kingsley Real Estate put you in the driver’s seat of home ownership.

If you are ready to make the move, whether selling or buying, call or stop by our office and I will be happy to share my knowledge with you at no cost or obligation.  If you prefer, you can email me at donkingsley@kingsleyrealestate.com.

Entry Filed under: Buying A Home, Financing, Real Estate Tips