Do I really need a good credit score AND cash to buy a home? The answer to this question is both yes and no.
To learn more about what you really need to have to buy a home in the 2013 Orange County Real Estate Market here’s what you should be prepared to bring to the table if you want to buy a home this year.
Good Credit Still Matters But…..
If you’re someone who wants to buy a home in the 2013 Real Estate market you can still buy a home even if you don’t have the best credit.
Many homebuyers these days have been able to buy homes even if they have a credit score that’s as low as 660 but, a homebuyer shouldn’t be satisfied keeping their credit score low. The higher the credit score means that you as the homebuyer will be able to qualify for better financing to get a mortgage interest loan.
Cash Is Still An Important Part Of Buying A Home
As a homebuyer, the more cash you bring to the table means that you will qualify for a lower mortgage payment and you will be able to pay off your mortgage sooner that other homebuyers.
The average homebuyer in Orange County should be prepared to put down at least 20 to 30% for their down payment.
What Lenders Are Looking For
Any homebuyer, whether in Orange County or across the United States can expect the typical lender to look for the following things from potential homebuyers:
- Payment History – A typical lender will take a critical look at a potential homebuyers payment history since the credit score is weighed against a payment history by as much as 65%. That’s why it’s important for a potential homebuyer to keep their payments current if they plan on buying a home.
- Job History – Lenders want to see that a homebuyer has been with their same employer for at least 2 years and most important of all, they want to see that their income has increased during that period of time.
- Balance-To-Credit ratio – Another important thing that lenders want to see is a low-balance-to-credit ratio just so they can have confidence that a homebuyer will be able to pay back their mortgage loan over the lifetime of that loan.
To learn more about what to expect when buying a home or to view the latest Orange County homes for sale, contact Fred Sed & Associates by calling us at (949) 272-0125.