First-Time
Buyers: Line Up Those Ducks!
Unexpected
Bargains Test Pearl River First-Time Buyers
Pearl River First-Time Buyers Need Advance Planning
It can
happen when you least expect it: an opportunity unexpectedly opens up – and you
suddenly realize that the time to become a homeowner is here! It may happen
when the landlord of the Pearl River home you’ve
been renting suddenly decides it’s time to sell. Or, during a search for a
rental, you happen upon a new Pearl River listing
that’s such a bargain you’d be crazy not to snap it up!
For Pearl
River first-time buyers, unexpected opportunities like these may be the
first time they seriously entertain home ownership. If that’s the case, they
may well be disappointed.
The fact is, the time for
first-time buyers to start planning is well in advance.
Job One is to take very seriously
the sometimes arbitrary-seeming Rules of the Road for credit scoring. Money Magazine recently reported the
average FICO credit score for denied conventional loan applicants was 729…a
pretty darn good score for anything else. The score on approved loans was 762
-- after an average 21% down payment!
Successful first-time buyers have
kept their options open by lining up their ducks well in advance -- completing
at least two mandatory steps. For anyone who hasn’t done so, right now
would be the appropriate time to start!
1.
Get
your accounts in order. If it comes time to pull the trigger, every bank will
look closely at every bank account you have. They look for “seasoned” funds,
meaning cash that has been on hand for at least three months (sometimes six),
untouched. First time homebuyers will
have established the total amount needed for a down payment -- or have a clear
trail of the origin of the assets they will sell to get it.
2.
Check
your debt. Banks are looking for a
debt-to-income ratio of no more than 33%.
If you got a little too festive with your credit cards during last month’s holiday season, start paying down those
balances.
Buying
a first home is an exciting decision that can be as fun as it is
stressful. Having prepared in advance
will accentuate the fun part , just as having the right agent by your side
will, too. If and when the opportunity
to become one of our Pearl River first-time
buyers presents itself -- or even if you
have any questions about how to prepare -- give me a call anytime on 845 544
4026!!!
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