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Home Buying Advice by Astro Realty

Astro Realty of Cedar Lake, Indiana

Home Buying Advice

4 Tips to Establashing Credit
If you dream of one-day owning your own home, you’ll most likely need to finance its purchase. Mortgage lenders will want to review your credit history to evaluate whether or not you’re a worthy borrower. So how do you get started establishing a credit history? Here are four ideas for you to get you started:
  • Open a bank account
  • Open a bank account and use it responsibly. This is the first step in establishing a financial history.
  • Get a co-signer A good way to establish credit is to piggy-back on someone who already has good credit history established and is willing to co-sign, but be aware that any default of credit on your part affects the credit of the co-signer.
  • Secured Credit Card
  • Apply for a credit card. Shop around and only apply for a card if you can meet the lender's requirements. Responsible use will help you build a good credit history.
  • Department store and gasoline credit cards
  • Since gasoline credit cards are not revolving (cannot carry a balance forward month-to-month), often they are easier to obtain than regular credit cards. Similarly, some department stores offer revolving credit for a specific purchase and this is easier to obtain. It is also a good way to establish credit.
If you’d like to chat more about steps you can take now that will help make your dream of homeownership a reality, I’d be happy to offer my expert advice. Just give me a call. 219 374 9890

5 Common First-Time Home Buyer Mistakes
1. They don’t ask enough questions of their lender and end up missing out on the best deal.
2. They don’t act quickly enough to make a decision and someone else buys the house.
3. They don’t find the right agent who’s willing to help them through the homebuying process.
4. They don’t do enough to make their offer look appealing to a seller.
5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.
Source: Real Estate Checklists and Systems, www.realestatechecklists.com.

Lender Checklist: What You Need for a Mortgage
• W-2 forms — or business tax return forms if you're self-employed — for the last two or three years for every person signing the loan.
• Copies of at least one pay stub for each person signing the loan.
• Account numbers of all your credit cards and the amounts for any outstanding balances.
• Copies of two to four months of bank or credit union statements for both checking and savings accounts.
• Lender, loan number, and amount owed on other installment loans, such as student loans and car loans.
• Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate.
• Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account.
• Copies of your most recent 401(k) or other retirement account statement.
• Documentation to verify additional income, such as child support or a pension.
• Copies of personal tax forms for the last two to three years.

Get Your Budget in Order
Expect the Unexpected
Tracking your expenses for a month is a great way to identify routine expenses. However, life is not routine. Prepare for the unexpected. Here are a few examples of unexpected or unusual expenses. Set aside a little every month to spend on these events.
You'll need to examine your own life to make a complete list.
Change in Life Expenses
Weddings & Baby Showers
Holidays & Birthdays
Home & Car Repairs
Broken Appliances
Office Parties
Medical Costs
Emergency Travel
5 Tips for Creating a Household Budget
Goals can be as short-term as buying a new pair of shoes next week, or as long-term as going on vacation next spring.

If it's just you, great. But if you have a spouse and/or children, create a budget together, and explain to everyone that they may be asked to make sacrifices.

A budget that leaves no money for an occasional dinner out or for a family outing at an amusement park is designed to fail. Your budget should help you, not put you in a bind.

Most people look at saving as putting away money for a rainy day. But a better way to look at it is putting away money for a nice vacation.

Buy what you need first. The wants belong in the "what's left over" catego

Phone: 219 374 9890
Cell:    219 688 3443
Equal Oppurtunity
MLS Realtor
Greater Northwest Indiana Realtor Association
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