There are several different circumstances when you’re getting ready to buy.
Some tips for first-time buyers, prepare for payment shock.
This may not be as big of a shock as in times past, because rents are at all-time highs. But typically, you will experience an increase above your current rent. We suggest preparing for that by banking the increase. If you currently pay $1,500 a month rent and you have been qualified for a payment of $2,100, start putting $600 a month in the bank. This way, when you find your dream home, you are already prepared for the payment increase and you have also saved extra money in the process.
Another tip is fasting. If you have ever had a blood test, doctors ask you not to eat or drink for a certain number of hours. When shopping for a home, it’s much like fasting. Don’t buy a new car, don’t purchase any furniture or appliances, etc., until you have your keys in your hand.
Market recovery buyers
The market crash was roughly a decade ago, but many buyers are still feeling the effects. Here are some tips to get back to homeownership.
Very few people came out of the crash unscathed and many filed bankruptcy, went through foreclosure, did a short sale, had collections, late payments, etc.
You don’t need to pay for a credit repair person; most people can do this themselves. When you have your credit run, you will see any remaining negative accounts on your report.
Say you have an unpaid collection and want to settle, you contact the creditor and/or collection agency and arrive at a number and settle the account.
That is not the last step. The collection agencies do not have to send the settlement information to the reporting bureaus. However, you can do this with a simple letter and the proof showing the debt was settled. Send those statements along with a letter requesting removal of the negative marks to the agencies that are reporting. Typically, there are three (all their addresses and contact information will be on the credit report). This will ensure that the negative mark on your credit report is removed.
There are many ways to maneuver through the buying process. Above are just a few tips to help make the process smooth.
Always consult a professional.
Jim Filippi, Nationwide Mortgage Licensing System No. 241357, is the branch manager and Scott Tonnesen, Nationwide Mortgage Licensing System No. 331812, is the sales manager with the Fairfield branch of Nations Lending Corporation, licensed by Department of Business Oversight, under the California Residential Mortgage Lending Act, Nationwide Mortgage Licensing System No. 32416. Reach Jim at 880-2555, Scott at 246-5670 or by email at [email protected] or [email protected]