Don’t buy that house…
I know this title may seem like I’m trying to talk you out of buying that house but after Jacob and I were engaged we started the search and we wanted to pass along some advice before you do buy that house.
1) Consider the total cost
Be prepared to pay the full 20% down payment. I was working part-time and going to school so I started putting money in our “house” account and in our “wedding” account along with Jacob and we barely had enough left to make it to the next pay week. I still lived at home and I have no shame in admitting that I totally took advantage of it because not before too long, Jacob and I had some money saved in our “house account” but not nearly enough for 20% down on a house.
2) Getting preapproved takes the anxiety out of the process
“We” didn’t have the greatest credit scores, no money for a down payment, and houses priced out of our range in a town we really wanted to live in. The thought of not having a place gave me an anxiety disorder. Before and after work and sometimes during school I was constantly searching for a home online, plus I created search notifications to alert my phone. The more I looked at house prices, the more depressed I became. Getting preapproved will narrow down your search to the homes that you can afford.
Okay, a short background story…Jacob had been engaged to someone before he met me. They owned a house and lived together working towards a wedding that seemed too distant to become a reality. It really was too distant and it would never become a reality when his fiancé soon became his ex-fiancé. Jacob left the house and moved in with a friend. Since he wasn’t living at the house he stopped paying on it. The ex-fiancé let the house go and Jacob got a foreclosure on his credit report.
3) See if you qualify for low interest mortgages (depends on credit score)
Because of our credit scores, Jacob and I did not qualify for Fannie Mae or Freddie Mac mortgage which are low interest. Do yourself a favor and be sure to ask your credit union or bank if you do qualify or if you are a Veteran you should definitely check into a VA Home loan (best deal out there now). We did qualify for a bank loan but we realized that the interest rate was way too high so again do yourself a favor and shop for interest rates like you would anything else. It takes patience!!!
4) Where you want to live is important
Think about the school district? Is it close enough to work? Does the neighborhood seem like a friendly place to live? Don’t be afraid to ask people who live or are familiar with the area even before considering.
5) Contact a local reputable realtor
Use your contacts and use the internet to find out who has the best rating. You certainly don’t want to be led to something that you don’t want. Buying that house is a big decision make sure it’s with someone who you’re comfortable with.
So there! After months of banging our head against a wall we finally figured out how to buy a house! Hopefully this will help all of you that are in the house hunt this summer
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