Making Sure You Remember Everything With Your First Home
The first time anyone goes through the process of buying a home is a thrilling experience, to say the least, but it can also be a little intimidating. If you’ve never bought a home before, you may not even be sure where to begin. With so many critical steps involved in the process, it can be easy to overlook one.
Of course, having the right kind of counsel in the form of a qualified Realtor who specializes in the neighborhood where you’re buying is key. Beyond that, you can’t do enough reading to prepare for the experience. And fortunately, we’re here to help. Here’s a handy checklist on how best to approach buying your first home, so you don’t forget anything crucial.
1. Check Your Credit Score
In many ways, the number one factor that will determine whether you get the mortgage you want at the rate you want will be your credit score. It is very important that you know your credit score going in to the whole process.
Keep in mind that even if your credit score qualifies you for the mortgage you want, you may not get the most competitive rate if your score is not high enough. It is often worth it to wait a few months and pay off credit cards or other outstanding debt to boost your score before seeking your mortgage.
2. Find a Mortgage Lender
You don’t necessarily want to go with the first mortgage lender you find. Comparing mortgage lenders is the best way to ensure you will get the best possible rate. A difference in rate could add up to hundreds or even thousands of dollars of savings over the course of your loan, so take the time to find the best option.
3. Get Pre-Approved
Pre-approval is not the same thing as being pre-qualified. Almost anyone can get pre-qualified, but pre-approval means that the lender has actually gone through most of the process of determining whether or not they can give you the loan, including checking your income, assets, credit and employment, and they have decided you are an acceptable risk.
Once you are pre-approved, you will know exactly how much house you can buy and can shop with confidence.
4. Search for Your Home
Many people today like to start their home search online. This is an easy way to cover a lot of possibilities fast. Once you’ve narrowed down your options according to features like walkability, crime statistics, or schools, you can drive around and visit the neighborhoods or the homes themselves.
5. Find a Real Estate Broker
You can try to broker your own deal but having a professional real estate broker can help you avoid a lot of the pitfalls of homebuying, especially as a first-time buyer.
6. Submit Your Offer
Your real estate broker can help you with negotiating a price, but remember, their goal is to make a sale, so their advice may not always be in your best interest. You should know what prices other houses in the neighborhood have gone for recently to help you decide on a fair amount for the home you’re purchasing.
7. Have an Inspection Done
A professional inspection is a standard part of the home buying process, and makes sure there are no big issues, like a leaky roof or faulty electrics, that need to be addressed before you buy the house.
8. Get an Appraisal
A professional appraisal is also required before the lender can issue your mortgage.
9. Close the Sale
That’s it! On the closing date, you’ll sign the papers, and the home is all yours! Don’t forget to use Online Lender Search now to help you save on your mortgage rate!
