Building Your Home Buying Skills

FRAMING

The saying “Knowledge is Power” is very true. Understanding the mechanics of buying a home is the first thing you want find out. As you know credit and cash play a major role in buying a home. Yes, nothing makes home buying less stressful than having cash on hand. So go to your piggy bank and count how much you have. And last but certainly not least is collateral. More than likely the home you are buying will be sufficient collateral. Now that you have the blueprint you can start putting up the frame.
Credit oh credit! We all have it, some better than others but don’t worry, there is loan for all of us. The key is knowing what is on your credit. If you don’t know then how can you make an informed decision on anything dealing with it? The first thing, if you haven’t already done so, is get a copy of your credit reports NOT REPORT but REPORTS. Your credit is recorded by 3 major credit reporting agencies. Equifax, Experian, and Trans Union. These are the folks who report how credit worthy you are. So think about that hospital bill you didn’t pay because you thought they over charged you. Well it may be on there. The good news about obtaining this information is now simple and free. You can now go to http://www.annualcreditreport.com/ and receive a credit report from all three bureaus. Cash, yes this is an easy One either you have or you don’t. Don’t sweat it. Focus on the positive. Many of today’s home buyers do not have a lot of cash to put towards their home purchase. Knowing what you do have however can prepare you for things ahead and out of pocket expenses that can occur before the big day. Now let me specify what cash really is or should I say what it isn’t. Cash isn’t that $2000 under your mattress or that $500 your uncle said he will give you when you need it. It is verifiable monies. That is money that you and the IRS know about. So if you don’t have a checking and savings you need to get them. That is one thing lenders will look for. Bank accounts show stability. Also you should start tracking your spending habits. Even if you just write down your day to day purchases it gives you an idea of where your money is going. Now the last thing is the most important the reason for everything. Collateral or better know as the house you are buying or the house you are selling to buy another house. Either way, go for it find that house. Even if it’s not the best house on the block it will be yours. The key is to understand that your home will grow in value and from that you can sell it and buy a better home. Begin building your portfolio and start with your most important asset your home!