So you are ready to purchase a home! Congratulations, you are about to embark on a financial journey that has the ability to be the safest and most prosperous investment that you will ever make. For years home purchases have been seen as one of the most desirable investments due to the fact that once the home is purchased, it continues to make money for the owner. Equity is a powerful thing that can enable you to purchase other properties and grow your wealth. In order for this to happen, you need a game plan for your purchase. A step-by-step plan that is designed to make the purchase process easier and eliminate any chance of error.
Before you start the home shopping you will need to arrange your finances.
The amount of money you have to work with will depend largely on the state of your credit. If you have damaged credit then its advisable to get a detailed copy of your credit report and attempt to fix any issues that are outstanding. These items can reduce the amount you are eligible for in a home loan and if serious enough disqualify you from eligibility. Once these matters have been cleared up (if necessary) continue with your mortgage shopping. Finding the right mortgage is an important things as it will dictate your financial picture for the foreseeable future. Under normal borrowing circumstances the fixed rate mortgage will be the most attractive as it offers a non changing monthly payment at an interest rate that will stay the same for the duration of the loan. Once you have been fully approved it is time to start home shopping. Don't skip the approval step as buying with a pre-approved mortgage gives you pull in any bidding situation. Home sellers are looking for the sale that will go off without a hitch and dealing with people who don't have their mortgage secured is a hassle that most will try to avoid.
Take the time to search your chosen area completely, weighing each available home in turn. such a large purchase is not something to be rushed. There is nothing quite like finding that perfect home and having the security and financing to purchase it.
