Additional Information for Buyers


WHAT CAN YOU AFFORD?


Before you really start to look at houses, it is highly recommended to know what price range of home that you may be able to afford. To help figure this out, you will need to know how much of a monthly payment you feel comfortable with. Step one is to call mortgage lender.  It is also important to use a Lender that is LOCAL.  There are a lot of Internet mortgage lenders, but you will want one who is local.  You will need to submit a lot of documents throughout the process, and it is best to be able to know who that information is going to.  Additionally, if there is problem, you want to be able to go to someone’s office to take care of it.  


You may also want to plug in some figures into a Mortgage Calculator. A mortgage calculator will give you a good estimation of what your monthly payment would be. Please keep in mind that this is just for principal and interest. Taxes and insurance will be additional.


To determine what the potential tax amount is for a property, you can visit the Pueblo County Assessor's Office website. To determine the potential amount for insurance, you will need to contact your insurance agent. If you do not have an insurance agent in Pueblo, and would like a referral to a qualified agent, please do not hesitate to contact me.


Don’t Let This Happen To You

I have seen too many buyers look for a home and then find out that they cannot afford it, or even qualify for a loan.  If you do not qualify for a loan, do not give up.  Work toward that loan pre-qualification.  I am not going anywhere.  I will be here ready to help you find your new home when you are able to purchase.


THINGS TO KEEP IN MIND



FOUR THINGS NOT TO DO WHEN BUYING A HOME


  1. DO NOT CHANGE JOBS.  This can create a problem in qualifying for a loan or completing the loan process, especially if the new job is in a different line of work or at a lower rate of pay.
  2. DO NOT MAKE ANY MAJOR PURCHASES.  Buying a new car, furniture, appliance or incurring any new credit  card debt before your loan closes, can make it difficult to get your loan approved, even if you were already pre-approved.
  3. DO NOT SWITCH BANKS OR MOVE MONEY AROUND.   This can wreak havoc with the verification process, and can delay the timeframe for which your loan can Close.
  4. DO NOT PAY OFF CREDIT CARD BILLS.   Your loan officer will be able to advise you if it is better to pay off bills or to use that money in more advantageous ways.  


If you must do any of these things listed above, contact you loan officer immediately. They can advise you of your options.


WHAT DETERMINES A CREDIT SCORE


Payment history (35%)

The first thing any lender wants to know is whether you've paid past credit accounts on time. This is one of the most important factors in a FICO® Score.


Amounts owed (30%)

Having credit accounts and owing money on them does not necessarily mean you are a high-risk borrower with a low FICO® Score.


Length of credit history (15%)

In general, a longer credit history will increase your FICO® Scores. However, even people who haven't been using credit long may have high FICO Scores, depending on how the rest of the credit report looks.


Your FICO Scores take into account:

   how long your credit accounts have been established, including the age of your oldest account, the age of your newest account and an average age of all your accounts

   how long specific credit accounts have been established

   how long it has been since you used certain accounts

 

Credit mix in use (10%)

FICO Scores will consider your mix of credit cards, retail accounts, installment loans, finance company accounts and mortgage loans.


New credit (10%)

Research shows that opening several credit accounts in a short period of time represents a greater risk - especially for people who don't have a long credit history.


Get a FREE copy of your  Credit Score from www.CreditKarma.com.





MEGAN'S LAW


It is the Buyer's responsibility to determine if there is a sexual predator in the neighborhood in which they desire to purchase. Unfortunately, no neighborhood is truly immune to such things. To find out where the registered sexual predators are living, I encourage you to visit the Pueblo County Sheriff's Office OffenderWatch® website.









David R.G. Webb

Broker Associate

RE/MAX of Pueblo, Inc.

511 W. 29th Street, Pueblo, CO   81008

Cell: (719) 248-9286, Office: (719) 585-8797, Fax: (719) 546-1243

David@DavidRGWebb.com

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