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Buying a Home in Cincinnati

Fri, 04/24/2009 - 10:37am — carol.meadows
Here are some tips for buying a home in Cincinnati:
  • Get your credit reports - Errors on your credit report can prevent you from buying a home so it is very important to contact a helpful lender and get these errors taken care of before you look for a home.
  • Improve your credit report - Even if there are no errors on your credit report, you may have a low FICO score. The vast majority of lenders use the FICO system for evaluating your credit and it is important that you understand how this works so that you can make it the best it can be. This is another place that a helpful lender can create value for you!  This FICO number is sensitive to the amount of revolving credit you have, so when you get a little closer to aplying for a loan, make sure that you pay off your bills completely and try to reduce your charges. Also do not open or close any accounts until the mortgage process os completed.  Understand the mortgage shopping effect on your FICO score.
  • Deal with your debt - Take a hard look at where you spend your money.  If need be, write down every penny you spend for a month and take a look at where it is all going! Cut out anything that does not fit with your goals for the future. Sometimes you have to live with less now to gain more later!
  • Savings? - Talk to your lender about your savinds account, versus your debt. Is it better to use your savings account to pay off your debt? Not always.
  • Research the Mortgage Options - Some buyers did not do enough research a few years back and they are having trouble now. Do your research, be realistic, and make safe decisions.
  • Calculate how big a payment is safe and comfortable  Play it safe. Don't overspend! Make room for your lifestyle. Take account of the need to keep saving for a rainy day.
  • Research all the costs of owning a home  Often this is what sinks the ship. Maintenance can often wait but usually not for long. Eventually if maintenance to a home is not taken care of, much bigger bills will soon arrive.  Make sure that you have a rainy day fund.
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