Buying a home can be stressful when you don’t have all the information you need. Take a step in the right direction by learning more about the home buying process before you begin searching for your dream home.
Know Your Credit Score
A good credit score is essential to purchasing a house. The higher your score is, the lower the rates you will get on your mortgage. In general, if your credit score is 700 or greater you are likely to get the lowest possible rates. A score of any less than 700 will make buying a house more expensive for you.
Though it is possible to purchase a home if your credit score is bad, you will most likely get a subprime loan. They differ from other types of loans in that you must pay more in fees. Unless you need to buy a home right away, it is better to improve your credit score before making a purchase.
The Importance of Saving Money
The more money you can save before beginning the home buying process, the better. You will need to make a down payment, so saving up money over time is your best strategy.
Saving money is easier to do when you set a budget for yourself. Making a spreadsheet of your monthly expenses is often the best way to organize your thoughts. You can then determine if you need to earn more money or you can just cut back on spending.
Find the Right Real Estate Agent
By working with a real estate agent, the process of buying a house is easier. A qualified agent can help you find homes you can afford. They are also experts on the various neighborhoods and local amenities. Check with friends and family members for their recommendations. Use their input to begin your search for a professional real estate agent who can meet your needs.
Get Pre-Approved for a Home Mortgage Loan
To get pre-approved for a home mortgage loan, you must provide your lender with information on your income. They will also need to know about any assets. You will have an interview with a mortgage professional to discuss your current financial situation. He or she will assess how qualified you are to receive a mortgage. During the approval process, your mortgage professional will explain different options regarding loans offered.
Placing the Right Offer
After you’re pre-approved for a mortgage, the fun of the home search begins. It’s important to tour several properties before deciding and putting in an offer. When placing an offer, consider the length of time the home has been on the market. It may be that the seller will accept a lower offer if the sale period is dragging along.
What Happens After Offer is Accepted?
After you make an offer on the house and it’s accepted, closing day is just around the corner. You’ll sign any necessary paperwork, pay any fees that are due, and accept the keys to your new home.
Your real estate agent is the best source of information about the local community and real estate topics. Give the John & JP Stone Real Estate Team a call today at 559-349-2543 or 559-259-9927 to learn more about local areas, discuss selling a house, or tour available homes for sale.