5 Tips For Happier Home Buying - from Citi

Even in a buyer’s market, buying a home can be as challenging as it is exciting. Here are 5 ways to make the process easier and faster, from getting the best deal on a mortgage, to finding the right home for you.

Get your “financial house” in order:
Like any big financial commitment, buying a home takes some planning and preparation. You’ll want to get all of your finances together and evaluate where you are, and where you’d like to be. Your financial plan may require you to:

• Make adjustments to your saving and/or spending habits. Ask yourself do
you really need that item especially if you are going to charge to your credit card.
Frugal spending will give you a little nest egg for home repairs and “must haves”
when you move into your new home.

• Reduce your current debt. Create a plan for paying off those credit cards.

• Start saving for a down payment. It will reduce the total cost of your mortgage.
Adjust your spending habits by making smart spending choices which benefit you
in the long run.

• Review your household budget. Determine how much you can comfortably
afford before you take the plunge.

Review your credit:
Your credit score is all-important when you’re in the market for a new home. The higher your score is, the more money you can borrow, and the less you’ll pay over the life of the mortgage. To take advantage of the lowest rates possible, aim to have your score close to 700 or higher (on a scale of 350 to 800). The good news is, if your score isn’t where you want it to be, there are some steps you can take right now to improve it:

• Pay your bills on time. Your track record accounts for 35% of your total score.

• Lower you debt-to-credit limit ratio. Put together a plan to start paying off
your debt.

• Check your credit report for FREE each year! You may have forgotten to close
an account that you cut up the card to in 1982. So take advantage of the free annual
credit report and make sure to check for any errors throughout the report. You have
the right to dispute inaccurate or incomplete information and the consumer reporting
agency is responsible for investigating and correcting such information.

Get pre-approved over the phone with CitiMortgage:
Pre-approved buyers are serious buyers – at least that’s what your realtor is probably thinking. Getting pre-approved really serves two purposes. First of all, it puts you ahead of other buyers who aren’t pre-approved when it’s time to negotiate and put down a bid. Secondly, it helps you understand your limits, before you shop for a home.

Choose the right real estate agent:
Find an agent that spend time in the neighborhoods that you are interested in, they tend to be the better agents who can help you find the best home for you.

Really think about large and small changes:
For example a large change may be changing jobs. You want to make sure that any job
change doesn’t affect your mortgage approval. A small change would be changing your
current bank as you don’t want to slow down the process of verifying your checking and other monetary assets.