AZ Real Estate

Renting is convenient in your early years, as youre just getting a job and getting your life in order, perhaps even moving around for jobs, relationships and adventure. But as you get older, you may start thinking about buying a house, whether because youre partnered with someone or you are in a long-term career and want to settle down somewhere.

After all, when you rent, your money is spent on a temporary place to live; but when you own a house, your money is spent on paying down the mortgage of a permanent asset that you own.

The Homebuying Process

Buying a house is a lot of work — you need to figure out what you want in a house, get pre-approved for a mortgage, find a real estate agent who can help you, go house-hunting and ultimately make an offer. And the work doesnt stop there. Most people who have bought houses say that the real work begins once your offer is accepted and you move into your home.

Maybe youre not in the homebuying process yet; maybe youre still dreaming of what you want in a house, or which neighborhood or city youd like to live in. Maybe No matter what stage youre at, even if buying a house isnt something youre actively working on at the moment, you can take action today to help prepare by doing one simple thing: having a good credit score. Youre simply visualizing your future kids playing in the backyard or having the neighbors over for a barbecue on a warm summer evening.

Work on Credit Now, Benefit Later

When you go to a bank to get pre-approved for a mortgage, the bank will check your credit and use that to help decide if theyll lend you money and, if they do, what your interest rate will be. If youre approved, the bank will likely give you a preliminary loan amount number that you can use to help you start your house-hunting. When you make an offer on a home, youll go back to the bank and, as long as your credit is still in good shape, you should be able to get that pre-approved mortgage.

In other words, your future homeownership really hinges on your credit. Therefore, if you plan to buy a house in the future (even if its a couple of years away in your minds timeline), you are already taking action today on that house purchase.

When you use your credit card, when you pay your credit card off, when you borrow money for a car loan, when you decide to apply for another credit card, when you lend your credit card to a friend — everything you do that impacts your credit is ultimately impacting your eventual homeownership, from how much money youll get for your mortgage to how much interest youll pay.

So if homeownership is a dream that you hope will turn into a reality someday, consider the decisions youre making now and how theyll influence your homeownership.

*GOD Speed*

 

 

from The Cascade Team Real Estate Blog http://ift.tt/1swculf
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