Investment Trust Realty, LLC-

REAL ESTATE TIPS TO USE

WHEN BUYING A HOME

DOWN PAYMENT

SAVINGS

CLOSING COSTS

YOUR CREDIT SCORE

REAL ESTATE AGENT

MOVE IN EXPENSES

STICK TO YOUR BUDGET

Check and strengthen your credit. Your credit score will determine if you qualify for a mortgage and the interest rate lenders will offer you. Get free copies of your credit reports from each of the three credit bureaus — Experian, Equifax and TransUnion; and dispute any errors that could hurt your credit score. Pay all your bills on time, and keep credit card balances as low as possible. Keep current credit cards open. Closing a card will increase the portion of available credit you use, which can lower your score.

YOUR CREDIT SCORE MATTERS!

If you are planing to buy a home, the earlier you start saving, the better. Open a bank acount and make sure you start to save consistently untill you have enough saved for your downpayment and closing costs.

Your down payment requirement will depend on the type of mortgage you choose and the lender. Some conventional loans aimed at first-time home buyers with excellent credit allow as little as 3% down. But even depending on your credit score, debt to income ratio and other factors, your down payment may require more money upfront (10% or more).

Closing costs typically range from 1% to 6% of the loan amount and are the fees and expenses you pay to finalize your mortgage. Some sellers might agree to pay all or a portion of your closing costs.

Move in expenses are also an important factor when buying your first home. Depending on the condition of the home you buy (new or used) there are always some extra expenses you must budget-in savings, since you might need to do some home repairs, upgrades and furnishings for the new house.

Decide how much home you can afford. To avoid financial stress down the road, make sure you set a price range based on your budget, and then stick to it. Look at properties below your price limit to give some wiggle room for bidding in a competitive market. Stick to your budget.

Your Credit score: In order to secure a mortgage loan, or any type of credit in the current market, most financial institutions are going to want to check your credit score. Your credit score is a three-digit number that ranges from 300-850 points and is calculated using credit history information from your credit report, which takes into account different factors such as: the number of your open credit accounts, your payment history, credit inquiries, etc. This data is grouped into five categories: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%). Your credit score is used to predict the likelihood that you'll pay your debt on time. Many financial information companies base their decision on a single credit score known as the FICO® Score, which basically combines the reports of the most popular credit bureaus, into one.

Real Estate Agent: A good Real Estate Agent can make things much easier for you and may even help you save time, and money. It is always good to have a knowledgeable real estate agent assisting you, to try to save as much money as you can, on the purchase of your first home, or on your investment property.