If you’re considering buying a home, then it’s time to arm yourself with a game plan. Whether you’re interested in finding a beach house, a condo or luxury properties in La Quinta, there are some strategies you should put into place and information you should seek when preparing for such an important transaction.
The most important step on this checklist is to find a real estate professional that you trust and that has the right expertise for your transaction. Deciding to hire the right kind of broker, short sale realtor or other type of agent for the type of purchase you want to make is what will make the difference between a stressful transaction and one that moves forward smoothly and productively.
One of the next most important things is to get your credit score as high as possible. The higher it is, the lower both your down payment and monthly payments will be. Depending on the market, many experts say that to avoid paying huge fees and having to put down a sizeable down payment, you should probably strive for a credit score of 700 and above. While there are many qualified buyers in lower ranges, this is a good number to work towards. Pull your credit reports and dispute any discrepancies, and stop applying for new credit for about a year before you plan to start looking for that gorgeous beach house or luxury properties in La Quinta.
Next up on our checklist: seek a price range that’s within your financial comfort zone. Certain financiers require your monthly payments not to exceed between 28 and 31 percent of your monthly income. This is a good formula to work with when assessing the home you can afford—you should calculate the potential payments for a property in your price range and add in any increased expenses, such as insurance or HOA fees, and see if you can live with the difference.
Finally, start saving now. Most real estate professionals recommend saving around 20 percent of the intended price range for a down payment. Obviously, some lenders accept much less, but a larger down payment may be better for your future. Start saving now, even if you’re not in the market yet. When you do enter the marketplace, and if you’re working with a good short sale realtor, you may need to move faster than you thought when some incredible deal comes your way.
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