Secrets to Financing Your Next Home!
Tired of renting? Are you ready for more space? Getting your finances in order is the first step towards getting your dream House in Louisville Kentucky, read below for advice from Heidi Fore, one of the top realtors for buying and selling Louisville KY homes.
In my experience, when preparing my clients for jumping into this world of mortgages and financing a House in Louisville Kentucky, I have found the following these rules to be extremely helpful.
*If it is possible to do so without adversely affecting your down-payment situation, pay off minor debts. The less debt you have the easier your mortgage process will be. Pay off credit cards first. Close the minor cards, but not all of them. Please remember that The Heidi Fore Team are not mortgage lenders, and you should call mortgage lenders directly for details on all of this. It is important to keep the cards with a small balance and low limit that you have had a long time. Close high limit cards you donâ€˜t use much, like department store cards. BUT WAIT! Itâ€˜s good to have a little bit of credit to show banks that you have had loans and credit cards in the past and that you managed them properly. So consult a lender BEFORE you start paying off and closing your cards. I had a client once close down everything and then the lender said that he couldnâ€˜t get a good loan because he didnâ€˜t have a credit history. You might read books or hear talk shows talking about why you should be debt free-well itâ€˜s not necessarily a good thing when applying for a loan. Banks want to see a credit history. Two of these â€œopenâ€ lines of credit are good. An example of this is a car loan, and you should also have two small-balance credit cards that you pay every month on time.
*Do not incur any new debt. Many mortgage applications have been stopped in their tracks because the applicants decided a week before the application that a shiny new car would look just perfect in the driveway of their new House in Louisville Kentucky. Since mortgages are based on debt to income ratios (the amount you pay out monthly versus the amount you bring in), a newly acquired debt could make your total monthly bills too high and throw off the ratios, which would make the mortgage unobtainable.
*Get pre-approved for a mortgage. When it comes time to write an offer on your dream Louisville Ky house, sellers are more likely to accept an offer if the buyer has been pre-approved. You can choose any lender you want, but our clients have liked working with these lenders. It is just as important to choose the right lender as it is to choose the right RealtorÂ® or closing attorney. Choosing the wrong one could result in delays that cause your contract to expire. If another buyer has put a back-up-offer on your dream House in Louisville Kentucky and your contract expires, you could lose the contract.
Heidi Fore is a realtor with Keller Williams Realty Services in Kentucky and Keller Williams Realty Southern Indiana. Call 502-554-9400 with questions about Louisville KY homes for sale for sale