The Home Buying Process: Step by Step
So you've decided to buy a home! Congratulations! But if you've never purchased a home before or haven't purchased a home in quite some time, it can be difficult to know where to start. Use this handy step by step list to get started and keep you on track.
Step 1: Check Your Credit Report & Score
Before getting a mortgage or any kind of loan, you should always check your credit. According to the law, you're allowed to receive one free copy of your credit report per year. Scores range from approximately 300 to 850; generally, the higher your score, the better loan you'll qualify for. Don't forget to check your report for errors. If there are any, dispute them by following the dispute procedures listed for each credit agency - Experian, Equifax, and TransUnion. It may help your credit score. Contact Lyn to review your credit history and score.
Step 2: Figure out How Much You Can Afford
You can calculate how much you can afford by starting online. Use my mortgage calculators that will help you calculate an affordable monthly mortgage payment. Don't forget to factor in money you'll need for a down payment, closing costs, fees (such as fees for an attorney, appraisal, inspection, etc.) and the costs of remodeling or furniture. Remember that you don't always have to put down 20% as your parents once did. There are loans available with little to no down payment. I can help you understand all your loan options, closing costs and other fees. Contact me at firstname.lastname@example.org.
Step 3: Find the Right Lender and Real Estate Agent
To find the right mortgage lender, it's best to shop around. Get recommendations from your friends and family.Talk to at least three or four mortgage lenders. Ask lots of questions and make sure they have answers that satisfy you. Make sure to find someone that you are comfortable with and who makes you feel at ease.
Once you have the right mortgage lender, make sure you at least get a pre-approval. A pre-approval will give you a better idea of how big a loan you qualify for. The lender will actually pull your credit and get more information about you. However, you could even take it one step further by getting an actual approval before you start home shopping. That way, when you're ready to make an offer, it will make the sale go much quicker. Besides, your offer will look more appealing than other buyers since your financing is guaranteed.
Step 4: Look for the Right Home
Make a list of the things you'll need to have in the house. Ask yourself how many bedrooms and bathrooms you'll need and get an idea of how much space you desire. How big do you want the kitchen to be? Do you need lots of closets and cabinet space? Do you need a big yard for your kids and/or pets to play in?
Step 5: For more tips, continue here.