Make Money From Home

4 Tips for Finding (or Creating) Your Dream Home in a Tough Housing Market – The Motley Fool

Image source: Getty Images

It helps to be adaptable if you’re shopping for a house in tod…….

Image source: Getty Images

It helps to be adaptable if you’re shopping for a house in today’s market.

Key points

  • Before house hunting, it’s essential to have a plan.
  • Redefining your dream home is one way to land a property at a fair price.

Trying to buy a home right now is no joke. Most properties receive multiple offers, with some buyers willing to eat the difference between what they pay and what a property is worth. If you rightly view a home purchase as a business transaction, do not give up hope. It is possible to pay a fair price and build equity immediately.

Before heading out, take time to devise a plan. These four tips can help you get started.

1. Get your financing in place

Over the past six weeks, mortgage rates have been all over the place. Shop around to find out which lender offers the best rate and terms for the mortgage you need. Once you’ve found a lender, get pre-approved for a loan. If you’re not sure which lender you want to work with, it’s okay to be pre-approved by more than one. Here’s what you can expect to be asked to provide:

  • Pay stubs and employment details, including the name and address of your employer
  • Bank account statements
  • A list of your existing debts or financial obligations, such as alimony or child support

Using this information and the information on your credit report, lenders will determine whether they feel secure loaning you money.

It’s important to note that the credit check will ding your credit report by several points, but it shouldn’t be much, and your score will quickly rebound once you make a few on-time payments. No matter how many different mortgage lenders check your credit report, it will count as one hard credit inquiry. That’s because the credit reporting agencies understand that people shop around for the best loan and that several lenders may pull reports. If you can complete your loan shopping within two weeks, it will be apparent to the credit reporting agencies that you’re seeking the best loan available.

Once approved, lenders will provide you with a pre-approval letter indicating how much you’re eligible to borrow. Having this letter on hand is essential for your home search. Not only does it give you an idea of how much you can spend, but …….


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