Seven Important things to know before Purchasing a Home

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Wednesday, 7 January 2009

Home / Finance

By:Alfred Gaitan

Buying a home is an exciting process. Here are some tips that will help your house buying process:

1. Before considering to buy a house, get pre-approved by

<---****HYPERLINK****--->"http://www.1stusalender.com">1st USA Lender

A pre-approval document is needed by the real estate agent to demonstrate that

you a prepared and serious about buying a house. It will additionaly empower

you to negotiate a better offer to buy the house of your choice. Please read

the next tip for some important prelimary steps necessary to recieve a pre-approval

from <---****HYPERLINK****--->"http://www.1stusalender.com">1st USA Lender.

2. Get a copy of your FICO score

Most people start off finding a home then applying for a loan only to find out

later that there is something wrong with their credit. Don't let this happen

to you. Get a FICO Report before looking for a home. What is a FICO Report?

A FICO report is a tally of your credit score averaged from the 3 major reporting

credit bureaus: Experian, Trans Union, and Equifax. Negative information such

as late payments, collections, and bankruptcies can tarnish your score. However,

you can fix your credit score by paying off collection accounts, paying your

bills on time, and paying down any credit cards to below 40% the maximum limit.

In a few months you can possibly raise your FICO score by as much as 20 to 100

points. What this means to you is better loan terms when applying for a loan.

So remember, check your FICO score before buying that home. To find out your

<---****HYPERLINK****--->"http://www.1stusalender.com">FICO score and/or need assistance

in repairing your credit Call Us at 800-888-8886.

3. Buy a house that you will live in for at least 3 years

There are costs in buying and selling a home. Selling a house prematurely may

by disadvantageous to you. However, the right alternative might be to refinance.

Call Us at 800-888-8886 for more information before selling your house before

3 years of ownership.

4. Aim for a house that you can afford

You should buy a home that you can afford making the monthly payment. Don't

buy a house that is unnecessarily expensive. Your goal when purchasing a house

is to buy the house that is right for you. After all consider that a house purchase

may possibly be the largest investment you make, therefore you would like to

obtain a good return in the future. Call us at 800-888-8886 to to help you qualify

and locate your dream house.

5. Buy a house in a convenient location to you

Your house is the center of your life. Always consider good future equity appreciation,

safety, a good school district, and nearby freeway access. Through our real

estate resources we can assist you to locate a house that is convenient for

you.

6. Compare the price of the house you are going to buy with surrounding houses.

When you have found a house that you like, compare its price with houses in

the surrounding area. The house should be no more than 5 percent higher than

the average cost of houses in that area. Call us at 800-888-8886 for information

on assessing the value of the home you want.

7. Be sure to obtain a house inspection prior to closing escrow

A <---****HYPERLINK****--->"http://www.1stusalender.com">house inspection is for your protection.

this inspection will detect any house damages the need to be repaired by the

seller prior to the close of escrow.

Article Source: http://www.dailynewarticles.com

Alfred Gaitan is the director of technology at 1st USA Lender. For
more information on House Purchase, Refinance, House Equity
related articles, please visit 1st USA Lender.