If you are interested in buying a new Fort Wayne home in 2017, now is the time to start preparing. There is more that goes into buying a new Fort Wayne home than most potential homebuyers are prepared for. Unless you plan on buying a new Fort Wayne home with cash, you will want to invest the time to prepare for your purchase.
To help serve as a guideline for new Fort Wayne homebuyers, review the tips below before you begin down your path to buying a new Fort Wayne home in 2017.
Know Your Credit Score
It is important that you know your credit score and what your credit report looks like. Your credit score could be as low as 300 and as high as 850. The higher your credit score is the more favorable mortgages you will be able to obtain. The best loans are typically reserved for homebuyers who have scores over 740. If your credit score is lower than you would like it to be, get to work correcting it. It is not uncommon for there to be errors on credit reports. Make sure you correct all errors and work to pay any negative debt that you owe.
Avoid New Credit Cards and Store Cards
While you are preparing to purchase a Fort Wayne house you should avoid opening new lines of credit, including credit cards and store cards. Stores and lenders will try to tempt you into opening accounts by offering you low interest rates and in-store savings, but these new accounts can cost you thousands on your mortgage. New accounts can negatively impact your credit score, which can lead to you losing the lower interest rate on your mortgage.
Build a Savings
Not only will you possibly need a down payment when purchasing a Fort Wayne house you will also need to pay closing costs. Begin saving before you are ready to purchase so you can have a nice amount set aside when you start your home search. Homeownership also comes with the added expense of home maintenance. You will never regret having extra funds set aside in your emergency fund for unexpected home expenses.
Choose a Mortgage Lender
After you decide you are interested in buying a new Fort Wayne home, but before you start your search talk to a mortgage lender. Compare lenders and what they can offer you before you choose one to work with. When you have a lender you are ready to move forward with, meet with them to see if you can afford to buy at this time. A lender can let you know what your pre-approval amount will be for a loan and also what you can do to improve your chances of getting approved.
Buying a new Fort Wayne home can be a very exciting time. Being prepared before you begin will help you to enjoy the process and not be caught off guard by any negative surprises. Don’t wait to the last minute to begin preparing to buy a home, start now!