Three is the magic number when it comes to buying a house and here's why...
Shopping for a house (and that all-important mortgage) can be a stressful process,
especially if it’s your first time. But it doesn’t have to be that way. Here’s what you need
to know before buying your first home — and why these things always seem to come in
Review your credit reports from all THREE credit bureaus
Lenders use three credit bureaus to determine your credit score: Equifax, TransUnion, and Experian
Review your credit reportwell in advance of getting approved for a loan
If there happens to be errors on your report, get these corrected prior to getting
approved for a loan.
This helps the application process go smoother,and potentially saves money as
The better your score, the lower your interest rate is likely to be, which can make all the time spent fixing errors on your report well worth your while.
Get THREE Mortgage rate quotes
Every mortgage lender has different fees, closing costs, and criteria for the loans they offer
· This is why it is important to compare rates from different lenders.
Some lenders have higher commission fees - By obtaining quotes from three different lenders you’ll be sure to get the best deal.
Wait to apply for a mortgage for at least THREE months after making major financial changes
· Get your finances prepared long before you apply for a mortgage,
· if you need to make any large purchases (like a new car) ahead of buying a new home. It’s also advisable to not make any major changes to your finances months before applying for a loan.
Ask yourself THREE questions before you sign on the dotted line
· Before you make any offers or sign any paperwork ask yourself three questions: 1. Does it fit our needs now and in the future,
· 2. Can I easily afford the debt obligation, Monthly Mortgage payments, Taxes and Insurance
· 3. how much maintenance or refurbishment will need to pay for once I buy the home?
Your pre-approval is (likely) good for 3 months
You’ll need to have a pre-approval prior to making any purchase offers. “That way the seller will not have to wait for you to be approved and run the risk of having to put the house back on the market if you don’t qualify,” says Sexton. Most pre-approvals are good for 90 days, which means you’ll have plenty of time to shop around for the perfect home once you receive yours.