Thinking of buying a home or investment property? Here are 5 things to do before you start your home search.
1. Research The Area. Today with the internet there are so many ways to search areas that you like and to get an idea of what to expect in that particular area. It’s also good to get a feel for school districts, home prices, and crime statistics.
2. Speak With A Mortgage Professional. A good mortgage professional can help you figure out what you can spend, down payment and closing costs needed, and if you need to do anything else (ex: sell a home) to get approved.
3. Make A List Of Priorities. No home has everything. It’s good to decide what you need as opposed to what you would like to have, how many bedrooms, bathrooms, pool, garage, large yard etc.
4. Know Your Credit. All 3 credit agencies, Equifax, Transunion, and Experion all offer 1 free credit report per year. Many times credit reports have errors that can easily be cleared up. It’s good to know your score because you don’t want bad credit to interfere with getting a loan.
5. Know Your Monthly Budget. There are other carrying costs to buying a property that many home buyers may overlook. There are taxes, insurance and many times homeowner/condo fees. If you are buying an investment property it’s good to know that the potential rental income will cover your costs.