Next to saving for retirement, buying a house is one of the most important financial decisions made by many people in the United States.
Soraima M. Alonso, real estate agent with Real Estate Sales Force, revealed some steps that potential buyers can follow to find helpful resources and to learn the correct process when buying a house.
1. Start an early search for a house you would like to buy within the price range you can afford and within your desired geographic area.
2. Demonstrate that you have the money for the down payment as well as to show that you have enough savings to cover non-budgeted expenses that may come with owning a house.
3. Work with a lender to determine how much money you can borrow. An important factor affecting that is the income-debt ratio. In general, a good rule is to keep your debt at a level 36% of or below your monthly gross income. Lenders will also assess your income history, most recent W2s, having a steady job for a least two years and other documentation.
4. Obtain a prequalification for a line of credit for the loan. Remember you can get a free annual copy of your credit report by visiting www.annualcreditreport.com.
5. Make sure you have a real estate agent.
6. Find a house and make an offer.
7. Get a house inspection done.
8. Get an appraisal of the house.
9. Coordinate all paperwork with your lender and real estate agent.
10. Close the deal.
Alonso also commented that now is a good time to buy a house because interest rates are low, ranging from 3.8% to 4%, considering that interest is affected by a person’s credit rating and spending.
Haz clic para leer en Español: Diez pasos que debe considerar para Comprar una Casa