Tips for Those Wanting to Buy a Home in Washington

Maybe you already own a home but would like something different. Or maybe you're looking to buy a house for the first time. Either way, there are many things you'd be wise to consider that you might never have thought of before when seeking mortgage loans in Washington to buy a house:

• Be pre-approved in advance of looking for a house: This will help you know in advance what kind of home you can afford. Some people spend days, even weeks looking at houses that are out of their price range. While others who guess they can't qualify for more, look for a home that is much less than they would otherwise want. Additionally, some mortgage companies get a kickback for guiding clients to certain lenders, banks that might not be out to get you the best rate you qualify for.
• Get your credit score up: Request a credit report and look for ways you can improve your score right away. Are there false reports? Get them fixed by writing to the company reporting it in error. Are their small balances that you could payoff right away? Are there interest rates that are too high, which you could negotiate down with a phone call to the credit card company? And contact your prospective lender. They can also help you find ways to get your score up, and that mortgage APR down!
• Get together your down payment: Today, most mortgage companies and banks will require a good down payment on your knew home. Family and friends are not allowed to lend this money to you once an application for a mortgage has been filed. So, if you don't have savings for a down payment, you can go to parents, family, and friends who would be willing to lend you some money privately before you apply. And if you think of this well enough in advance, you can sock savings away for this on your own.
• Save up for closing costs: Closing costs are fees for items associated with bringing your real estate transaction to a legal close. So, you will need the extra money, above and beyond the down payment, to cover these costs. They typically are:
  • Fees charged for escrow
  • Title insurance fees
  • Fees for mortgage insurance(if your down payment is too small)
  • Homeowners insurance premium
  • Fees for recording the property's deed
  • Fees to the mortgage lender for originating the loan
• Look for government mortgage programs: Washington offers many special programs for people with disabilities or who qualify as having low to moderate incomes, or who are looking to buy homes in certain targeted areas of the state. Log onto the official Washington government website to find more specifics. You can also ask your mortgage company or real estate agent for information.