2 Things You Need To Know Before Starting Your House Search

Buying a home is a major process. It is not like you can just go to the house that you want and buy it right then and there. Even if you are paying with cash, there are still many things that you have to do before the house is yours. However, most people don't buy with cash. Most people finance the home. If you are planning on financing your home, you might be wondering what sorts of things you can do to make yourself a more favorable candidate for the house. Here are a couple things you need to know.

1. Credit Scores Are Not Everything

Credit scores play a big role in you getting the house that you want, but not in the way more people think. Generally speaking, you credit score will affect the amount of interest that you pay on the loan. After you have qualified for a certain amount, based on your income, they will decide how much interest to charge you. This comes strictly from your credit score.

For this reason, you shouldn't put off buying a house if your credit score is less than perfect. You might have a bigger interest rate at the beginning, but you can still get into the house that you want. Then in a couple years, after you have improved your score, you can refinance the home and get a better rate.

2. Your Savings Account Will Be Your Best Friend

Most people think it is all about proving how much you make. Although income plays a major role in the process, it is not the only thing that mortgage lenders take into account. The mortgage lender will want to see how you are spending your money. They will ask for bank statements so that they can see where you money in going, and more importantly, how much you have in savings.

If you can show them that you have a large savings account, with at least a couple months worth of living expenses saved up, you will become a more favorable candidate for a mortgage. This is because they will see that even if you fall on hard times, you should still be able to pay your mortgage.

So before you apply for the mortgage, beef up your savings account. You'll be amazed at how much more favorable you become to lenders.

By understanding these two things you can prepare yourself now to buy your perfect house. When you are ready, you can call a real estate agent and start your search.