Where Should I Begin?
There are many factors involved in the choice to buy a home. To minimize the time it takes to find your dream home, follow a few simple steps listed below.
1. Credit is important
Check your current credit rating and try to clear up any errors. Do you have a good record of paying your bills? Do you have any long-term debt, and if you do, do you have a good payment history? If your credit isn’t “perfect”, don’t give up. Contact a good lender to have them walk you through what it will take for you to get qualified for a mortgage. It is also important that you do not make any large purchases, such as a new car, during the time you are trying qualify to purchase a home. It may lower the amount you can qualify to borrow.
2. Find a lender
This is one of the more significant decisions you will make during you transaction. This is the person with whom you will share all of your financial information and who will be along side you throughout the entire process once you find a home. You should feel comfortable with them and confident they are looking out for your best interests. Feel free to shop around for a lender who can offer you a loan that best suits your needs. Do you need 100% financing? Are you trying to avoid mortgage insurance? Is an adjustable rate loan a better option? These are all things a qualified lender can help you decide. Bob Firestone and Company can help you find a lender who is right for you. Simply check our ‘Reputable Professionals’ list on our web site.
3. Get pre-qualified
After gathering all of your financial information and meeting with a lender they will be able to “pre-qualify” or “pre-approve” you for a loan. They will let you know the price range you need to stay in when looking for a home based on your credit and the loan payment you are comfortable with. They will also give you a letter stating your qualifications, which is usually provided to the seller once you put in an offer on a home. Not only will this let potential sellers know you are serious about buying their home, it also shows them you have the funds to complete the purchase.
4. Think finances
Even though you may be able to qualify for a large house, you may not want to spend that much. Figure out what monthly payment you are comfortable with while considering your monthly reoccurring debt such as utilities, car payments, or childcare expenses. You do not want to over extend yourself.
5. Make a list
Divide a piece of paper into two sides. On one side put the things you have to have in your home. For example, the number of bedrooms and baths you want, what style of house such as a cape cod or ranch, and anything else you need (fenced yard, garage, central air, etc). On the other side write the things that would be a bonus such as a fireplace, walk-in closet, etc. These are the things that would be nice to have but aren’t the deciding factor in buying a home.
Consider not only what your needs are at the present time, but what the future may bring over the next few years. Do you need to be close to work; near certain schools or a church? Will you need more or less space in the next 5-10 years? How big of a yard are you looking for? Do you have a certain community in mind? These are all important factors when you go to search for a home. Provide this list to your Realtorâ so that he or she can find a home that best suits your needs.
1. Credit is important
Check your current credit rating and try to clear up any errors. Do you have a good record of paying your bills? Do you have any long-term debt, and if you do, do you have a good payment history? If your credit isn’t “perfect”, don’t give up. Contact a good lender to have them walk you through what it will take for you to get qualified for a mortgage. It is also important that you do not make any large purchases, such as a new car, during the time you are trying qualify to purchase a home. It may lower the amount you can qualify to borrow.
2. Find a lender
This is one of the more significant decisions you will make during you transaction. This is the person with whom you will share all of your financial information and who will be along side you throughout the entire process once you find a home. You should feel comfortable with them and confident they are looking out for your best interests. Feel free to shop around for a lender who can offer you a loan that best suits your needs. Do you need 100% financing? Are you trying to avoid mortgage insurance? Is an adjustable rate loan a better option? These are all things a qualified lender can help you decide. Bob Firestone and Company can help you find a lender who is right for you. Simply check our ‘Reputable Professionals’ list on our web site.
3. Get pre-qualified
After gathering all of your financial information and meeting with a lender they will be able to “pre-qualify” or “pre-approve” you for a loan. They will let you know the price range you need to stay in when looking for a home based on your credit and the loan payment you are comfortable with. They will also give you a letter stating your qualifications, which is usually provided to the seller once you put in an offer on a home. Not only will this let potential sellers know you are serious about buying their home, it also shows them you have the funds to complete the purchase.
Even though you may be able to qualify for a large house, you may not want to spend that much. Figure out what monthly payment you are comfortable with while considering your monthly reoccurring debt such as utilities, car payments, or childcare expenses. You do not want to over extend yourself.
5. Make a list
Divide a piece of paper into two sides. On one side put the things you have to have in your home. For example, the number of bedrooms and baths you want, what style of house such as a cape cod or ranch, and anything else you need (fenced yard, garage, central air, etc). On the other side write the things that would be a bonus such as a fireplace, walk-in closet, etc. These are the things that would be nice to have but aren’t the deciding factor in buying a home.
Consider not only what your needs are at the present time, but what the future may bring over the next few years. Do you need to be close to work; near certain schools or a church? Will you need more or less space in the next 5-10 years? How big of a yard are you looking for? Do you have a certain community in mind? These are all important factors when you go to search for a home. Provide this list to your Realtorâ so that he or she can find a home that best suits your needs.