So you want to purchase a home, Congratulations! Many say that this is a dream that should be realized at all cost. Why? Let’s face it, renting is like putting your money down the compactor. No return, no results, money gone forever. Homeownership not only is an investment but gives a lot of people a feeling of stability and accomplishment. How can you make sure you are doing things the right way?
In this series of articles, House Hunting, We will discuss many of the things necessary to get you going and also to help with the decision making along the way. Although there are tons of things that one might consider, we will keep the articles precise and short.
Where do you start?
Start out by contacting a mortgage lender. This usually is a totally free service and the lender will assess your ability to purchase a home. If you don’t know a mortgage lender contact me and I can refer you to someone. Your credit and credit history is very important in your quest to purchase a home. According to consumerfinance.gov “The better your credit history, the more likely you are to receive a good interest rate on your mortgage loan.” A good Mortgage lender will give you solid advice on what you need to work on if you cannot get pre-approved. If you are pre-approved the mortgage lender can help tremendously with the rest of the process!
DQTs (Diana’s Quick Tips)
- Get pre-approved
- Meaning, get pre-approved for a home loan. Without the pre-approval your home hunting can become an exercise in futility. Sure you can move forward without being pre-approved, however many industry experts express that it is more advantageous to take this step. According to Experian.com “A preapproval letter communicates to the seller that you’re serious about going through with a purchase and that you’ve got financing lined up to close the deal.”
- Avoid purchasing NEW big ticket items
- Be very mindful of other purchases you may want to make around the time of your home hunting. An impulse buy or a quick purchase of a car, boat, or some other big ticket credit item, can adversely affect your approval and cause you to miss out on the home you really wanted. For some, if not careful, this might reduce your approval amount.
- Don’t underestimate the pre-approval
Remember: A good mortgage lender will provide you direction whether you are preapproved or not
Next steps
Once you are pre-approved: Contact your Realtor® – Diana Brooks 😉 !!!
The Realtor® will want to know what type of home you would like to explore buying. A few common questions you may be asked are: What can you afford? Where do you want to live? But a question you may have is: Why do I need a Realtor®, and how do I know which one is right for me? This will be discussed in our next article.