If you're hoping to buy a home in the near future, you'll want to make sure that you're ready for the home buying process. It's essential that you get your finances in order and understand what to expect during the process so that you choose a great home and get a mortgage that meets your needs. Before you buy a home, here are some things you'll want to do first:
Work on Your Credit
Your credit is a big factor in the type of mortgage and the mortgage rate that you will be able to get. The better the credit you have, the better the chances you'll have of qualifying for a great loan. If you're not quite there with your finances, taking some time to build up and work on your credit is a good idea. You can make changes in just a few months, and this can better your situation.
Save, Save, Save
You'll want to have a decent down payment saved up before you apply for a mortgage. In most cases, a down payment will be required. The more you save, the smaller the loan you'll need to take out. In addition, having at least 20% for your down payment is a good way to save even more. Doing this will eliminate the private mortgage insurance fee that lenders tack on to your payments. Save as much as you can!
Decide What You Want
It's a good idea to have an idea as to the type of home and neighborhood that you're after early in the process. This will eliminate wasted time looking at homes that are not within your expectations or goals. You can make a clear list of must-haves so you can talk with your real estate agent about available homes.
Get Pre-Approved
Before you get your mortgage, you'll want to get pre-approved. This will help you determine what price range you can afford. In addition, this will give you the opportunity to begin looking at potential homes. Most real estate agents will want you to be pre-approved before you begin looking.
Take these steps so that you're ready for this big life-changing experience! If you've taken the steps above and you think you're ready to begin looking at potential single family homes in your area, reach out to a real estate agent. They will be able to advise you through the whole home buying process and can take your stress away!
