If you’re thinking about buying a home for sale in DC Ranch, there’s no better time to start preparing for the purchase.
Here’s where to start.
4 Steps to Get Your Finances in Order to Buy a Home in DC Ranch
Even if you’re very confident in your ability to qualify for a mortgage to buy a home in DC Ranch, run through these steps – you may learn something new and improve your credit score (and therefore qualify for better rates and terms).
#1. Get a copy of your credit report.
Thanks to the Federal Trade Commission, everyone is entitled to one free copy of his or her credit report each year.
You can get yours here: https://www.annualcreditreport.com/index.action.
Once you have your credit report, comb through it to look for errors or accounts that haven’t updated recently. Report all the errors, and call creditors who are behind on reporting to ask them to update the reporting agencies so your information is as up-to-date (and correct) as possible. Do what you can now to reduce your monthly debt obligations and avoid opening any new lines of credit. Don’t close any accounts, either – they contribute to the age of your credit history, which is one of the many factors your credit score depends on.
#2. Figure out how much you can put down on a home.
You don’t always need a 20 percent down payment to buy a home, but the more you put down, the lower your monthly payments will be. Many home loan programs require you to put down a certain amount of money, so talking to lenders can give you a clear picture on how much you need to save or how much extra you should put down.
#3. Find the right lender.
You can – and absolutely should – shop around for a lender. Different lenders offer different programs, and some may also have different income and credit score requirements. Check with your own bank first, and then talk to some mortgage brokers who can help you compare lenders and what they offer. Still not sure where to go? Ask your friends, family and real estate agent who’s reputable and worth checking out.
#4. Get preapproved.
When you’ve chosen a lender to work with (one you can trust and that has a track record of good communication, as well as favorable consumer reviews), begin the preapproval process. The preapproval process isn’t as in-depth as an actual loan application is, but you will need to provide your lender with some documentation to prove your income, such as:
- W2s
- Previous years’ tax returns
- Proof of other income
- 1099s
Your lender will check your credit score and, if you’re preapproved, it will provide you with a letter that you can use to show sellers when you’re ready to make an offer on a home. The preapproval will be conditional; that means if your financial situation changes, the lender may deny you for a mortgage loan.
Are You Buying Your Next Home in Scottsdale’s DC Ranch?
If living in DC Ranch sounds like the right choice for you, we’d love to help you find your dream home in this beautiful, prestigious community.
Call us at 866-613-8356 or contact us online to talk about your options and tell us what you want from your next home. We’ll help you find it.
While you’re here, please explore homes for sale in these DC Ranch neighborhoods:
- Country Club Village homes for sale
- Desert Camp Village homes for sale
- Desert Parks Village homes for sale
- Silverleaf Village homes for sale
Don Matheson
Realtor | Founder
The Matheson Team
RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255
866-613-8356
don@scottsdalerealestate.com
