Financing your Olympia area real estate

Learning the basics to finance can make a world of difference when buying a home, plus can potentially save you thousands of dollars. Knowing your finances before you jump into the real estate game will put you steps ahead of most out there.

The steps to successful financing

Examine your finances.

• How much can you afford to spend? While a lender will tell you how much you qualify for, it's up to you to figure how big a payment fits into your budget. What monthly dollar amount do you feel comfortable committing to? Remember to consider related costs such as insurance and taxes, as well as interest and principle. Remember, just because you can afford a certain amount, doesn't mean you have spend that much. Find what works for your lifestyle.

Check your Credit Report.

• Your lender can offer you copies of three of best rated credit scoring companies out there, so you are aware of your current financial situation.

Get a pre-approval letter

• This is difference than simply being pre-qualified. Being pre-approved means you have done your homework with a lender and filled out the necessary documents proving you can in fact buy the home you are looking at. This also informs the seller you are a serious buyer and really plan on following through with a sale.

Shop Around.

• You are free to visit and check out as many lenders, brokers or banks as you want before making an informed decision on which loan and rate will suit you best. There are many choices in the  area or on the web.

While you're shopping for a loan, also look for the best loan costs. These may include:

• Interest rates
• Broker fees
• Points (each point is one percent of the amount you borrow)
• Prepayment penalties
• Loan term application fees
• Credit report fees
• Appraisal costs

Apply for a loan.

• Gather all the documents you'll need to verify your loan application. Lenders will want to know your job tenure, employment stability, income, assets (property, cars, bank accounts and investments) and your liabilities (auto loans, mortgages, installment loans, credit-card debt, household expenses and others). You'll need to provide documents such as paycheck stubs, bank account statements and tax returns. Check with your lender or broker for more information.

Know all the facts!

• The reason a lot of people got caught in this sub prime mortgage bust is because they didn't realize what type of loan they were getting and just blindly listened to their lender. Ask all the questions you have until you feel you have a solid knowledge of the loan. Pre-payment penalties, ARM rates, etc.

Your lender can help you clear up financial issues and work with you to obtain a loan OR a goal to set if you can't obtain a loan right away. Find a lender that will be patient with you and will help you understand all you are getting into. After all, this is the biggest purchase of your life.

For more information on obtaining a loan or a lender referral, contact our offices today. We specialize in helping people buy and sell Olympia real estate. Visit my Idaho Falls real estate affiliate for valuable buyer information and this great article on real estate investing. Also for more financial advice see our Clarksville TN real estate affiliate.

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