When you go to buy or sell your home you might have a few questions as to what you need to do to begin the process with your Real Estate Agent. Below we have a list of things that might help you get ready for your next move.
Buying A Home
Credit Score
Your credit score says a lot about you and it is amazing the amount of records that are involved to tally up this score. Your Credit Score consists of several factors such as: Credit Account History, Outstanding Debts, Payment History, and Credit Inquires. All theses pieces bring together your credit score and help potential lenders judge how much to allow you to borrow. Knowing it will give you an informed approach for the next steps.
Here is a quick reference guide to know how you would measure up.
Poor: 300-550
Average: 550-620
Good: 620-680
Great:680-740
Exceptional: 740-850
Save For Down Payments
Moving on from your Credit Score, you will need to determine how much is needed for your loan’s downpayment and closing costs. Depending on your Credit Score you will need to save up anywhere from 3% to 20% of the purchase price of the home.
Closing Costs
You will also need to prepare for closing costs. These are the fees that occur at the end of your home buying transaction. Closing Costs average at about 2.5% of the home’s purchase price. Your closing costs can will go to take care of such fees as: an attorney fees, title service fees, survey fees, and recording fees.
Pre-Approval
Pre-Approval for a loan is a lengthy process. It requires a full investigation into your credit history and credit score to evaluate the amount you can borrow to purchase a home. Unlike being Pre-Qualified; Pre-Approval removes the guessing game and should give you an exact loan amount, This will allow you to adequately save up the proper funds and give you a price range for your potential purchase.
Selling A Home
Staging
Before you begin to sell your home it’s a necessity that you make sure it is cleaned. Doing things like having the carpets shampooed, or the walls washed will help your potential buyers walk in and be able to envision their new home. Also, a well kept home raises fewer eyebrows and makes potential buyers feel more comfortable about their investment.
Inspections
Having your home inspected will save you time and money. The inspector will be able to give you a priority list of any major home repairs for you to work on. Whether you think you have problems with your house or not, it is important to have it inspected. It will remove any doubt and will let you know about unseen problems. Knowing the major repairs you need to make will help you eliminate contingencies (link to selling overview) towards the end of your sale.
Make Repairs
Once you have a list of repairs from your inspector you can now begin to make them. It is also, important not to only make the major repairs, but take some time to do some minor fixes and updates around your home. Spending time repainting the walls or fixing leaky faucets and showerheads will be a good investment for you because it could mean making extra money selling your house.
