Purchasing a new house can be a risky business. There is so much involved and so many loopholes to jump through before you can even buy the house, much less move into it. One of the biggest obstacles is not having sufficient funds in the bank – you will need a loan. Borrowing money temporarily is a huge commitment and responsibility because it all needs to be paid back, with interest. That’s why it’s important to look around and find the best mortgage rates in Fort Lauderdale.
But the best thing you can do is to have a game plan from the beginning; it will make the entire process quicker and less stressful. When it comes to Kloze, we want you to be satisfied with your results, but first, you must help us, help you. Do your homework and be prepared. Before you come to us requesting a home loan, consider completing these easy steps first.
Be prepared when applying for Kloze
A lot of unnecessary hassle can be avoided if you just follow these five easy tips.
- Have a reputable credit score
Having good credit is very important, especially when it comes to buying a house. Your credit score will tell the bank how responsible you are with finances – whether you can afford the things you buy, how prompt you are (or aren’t) when it comes to paying off your credit cards, and if you even have enough money in your account. Without a good credit score, banks will not issue loans because they do not trust you to pay them back. The cleaner your report, and the higher your credit score, the better luck you will have when it comes to being pre-approved. Always check your credit score before applying for a home loan!
- Get pre-approved
Before you even start looking at houses, meet with a qualified lender first. This is an important step that many first-time homeowners neglect. Pre-approval will give you an advantage over other prospective house-hunters, and will give you a great head start. Get a credit check and give NHL lending a copy of your W-2s, pay stubs, and bank and brokerage statements.
- Create a long-term budget and consider “hidden costs”
Have a plan. Know what you can afford, and what you cannot. Often in life, it’s good to aim for the stars, but this can be very dangerous when it comes to buying a house. Figure out how much money you will be making in the next 5 – 10 years, how much you will be spending throughout that time, and decide how much you will be able to put towards paying off the house. So many people get a large, expensive house that they can never actually afford. They just go bankrupt and they lose their house. Unless you are a millionaire, you will not get everything on your “wish list” – this is to be expected. Be smart. Do not let your emotions get in the way of reality. Get a house that fits your budget and save up for a nicer place – or fixing up the current one.
When buying a house, there are hidden costs too. Take into account that the buyer generally pays more of the closing costs, they cover the inspector’s fee, the appraisal fee, the mortgage fee, property insurance, property tax, and any other costs that come up. The asking price of the house is only a fraction of what you are actually paying.
- Use professional services and know your neighborhood
It’s wise to take advantage of professionals’ expertise. Especially if you are a novice, let veteran realtors and agents walk you through the process to put your mind at ease. They will remember things you will have forgotten and they are organized. Rely on a realtor you can trust. The more reputable someone is, the less likely that you will be taken advantage of.
Also, take some time to research the neighborhood. Is there a lot of poverty or crime? What is the school like in your new district? How tight-knit is the community around you?
- Take into account the resale value
Considering the resale value of your home, before you buy it, is very important. When you move out, you will most likely want to sell it. Many people do not think this through. “Houses” such as trailers, depreciate with time; when you sell it, you might get half of what you paid for it back. But houses with foundations and basements do not depreciate nearly as fast. Especially if you do repairs on it, replace carpet with hardwood flooring, update paneling with drywall, fresh coats of paint, etc. the value will actually increase.