What You Should Know Before Buying a House

Buying a house is a very important decision that you will make in your life. No matter what your reason is for purchasing a property, here are some things that you need to know before buying a house.  

  1. Clean up your credit history. Your credit score is very important when applying for a loan or a mortgage. It represents your capacity to finance a house. It sets the bar as to what price of the house can you afford to buy. To check your credit history, order a credit report from Equifax. Makesure that your credit report is accurate and updated. If there are mistakes in the report, contact the creditors and have them send corrections to the credit bureau as early as they can. 
  2. Free your credit card from too much debt. Pay all late dues including penalties and make sure you refrain from using your credit card if you can’t pay your debts on time.
  3. Lower your monthly payments. Lenders will look into your spending each month. If they see that you are using a huge chunk of your salary to pay your outstanding credit card and loan payments, it will reduce your chances of getting an attractive mortgage term. Taking steps to lower your monthly payments is a great way to receive a better financial review from your lending company.
  4. Decide about your must-haves and nice-to-haves. There are many Calabasas homes for sale but it is hard to find a perfect house that matches your budget.  It is very important to decide what features of the house you can’t leave without and what are those that you are willing to compromise on. Take the time to envision your future home and decide how many bedrooms you need, what style of home do you like, how big is it, and what kind of neighborhood you want to live in. A detailed list of wants and must-haves can help narrow down your searches. 5. Get pre-approved. Don’t get too excited about checking out Calabasas homes for sale. Before you go house hunting, make sure that you are pre-approved for your mortgage. Your approval letter tells you at what price range you need to limit your searches. This makes looking for your house easier and faster. At the same time, having a preapproval letter from the bank will help you prove your financial capacity to pay the seller.   

You May Also Like

About the Author: Dorothy Poole

Leave a Reply

Your email address will not be published. Required fields are marked *