Where Should You Start?

 

For many people the hardest part of searching for a new home is getting started. Especially in today’s competitive market, it’s important to arm yourself with the right tools so that when you do find that dream home you know what to do.

Here are a few quick tips:

1. Check your credit. If you’ve been penalized unfairly on your credit report for old or settled debts it could adversely affect your ability to get a mortgage and the interest rates you’re eligible for. Along the same lines, don’t apply for new credit if you’re planning on buying in the
   near future.
2. Start saving for both the down payment and the closing costs. Buyers can be asked for a down payment of anywhere from 3-20%, depending on your credit score and other factors. But don’t forget about closing costs! Here’s a link with the average closing cost rates in Los Angeles: http://www.bankrate.com/finance/mortgages/2011-closing-costs/los-angeles-closing-costs.aspx
3. GET PRE-APPROVED! This is the most important thing a serious home buyer can do. The process for getting pre-approved for a loan is much more extensive than it was a few years ago, but in general the process takes under an hour and is usually free.

Are you pre-approved? If not I recommend DiVita Home Finance, a family owned mortgage company that I have worked closely with for years. They’re great people, and they can walk you through everything.