What Should You Know Before Searching For a Home?
Published | Written by Jennifer Jacobs
Beginning the search for a new home is an exciting time, and it is only natural that you would wish to get started as quickly as possible. While such eagerness is understandable, you should know a few things before you begin searching for a home for sale in Tulsa.
Begin by becoming knowledgeable about what is on your credit report. Unfortunately, many buyers assume that their credit is in good shape only to be surprised when they submit an application for a loan. Your credit report provides a snapshot of your financial affairs and how well you manage them. While negative items do drop off your credit report after a while, even items from a few years ago can impact you today. Take the time to find out what is on your credit report so that you have an opportunity to correct any errors and/or improve your credit prior to applying for a loan.
Additionally, you need to know how much home you can afford. Buyers often mistakenly believe they can afford more of a home than a lender is willing to loan them. Until you obtain pre-approval for a mortgage, you really have no idea how much you can afford to buy. Spending time shopping for a home prior to obtaining that all-important number will be an exercise in frustration and could lead to disappointment.
Finally, make sure you have a good idea regarding how much you can afford for a down payment. At one time, 20 percent was considered the gold standard for down payments. Many buyers are not able to afford such a large down payment. Still, it is important to know how much you can afford, keeping in mind that you will also have other expenses, including closing costs and moving expenses.