Are you currently searching the housing market in hopes of finding your dream home? This can be an exciting time, but don’t let the excitement make you miss a few key things to keep in mind when purchasing your first home.
One of the first steps to buy a house is receiving pre-approval on a mortgage loan. However, an important factor of the pre-approval process is the status of your credit score. The higher the credit score, the more likely you are to be pre-approved and obtain a lower interest rate.
If your credit score has seen better days, focusing on improving your credit score through timely payments and reducing your debts is a good start.
During the pre-approval process don’t stop at the first lender who approves you. Shop around for different lenders to obtain the best rates.
You’ll need to understand all the parts involved in buying a home including closing costs, annual percentage rates, and so on. Comparing different loan options with lower rates but higher closing costs and vice versa is important to obtain the best mortgage possible.
Create a Needs List
When shopping around for a home having a needs list ready for your realtor is critical. This purchase is a large financial investment that you want to assure will meet all or at least most of your needs and wants.
Work with a Realtor
While searching for a new home, working with a realtor you trust and who is highly knowledgeable on the area you are looking to move to is important. Not only will this increase your chances of landing the home you’ve had your heart set on but it will also assist you in not overpaying for the property.
Establish a Budget
During the pre-approval process you may have been approved for an amount that you thought was out of the question. While the lender approved you for a certain amount, this does not mean you need to buy a house at this price. Understanding what you can and can’t afford and remaining within your budgeted goals is a key component of being a successful homeowner.
Buying a home can be an exciting yet daunting experience. Going through this process with trusted resources such as a quality realtor can make a substantial difference in the success of you buying a home.