You've done it! You have made the decision to stop paying someone else's mortgage and decided to start investing in yourself. Now what? Here is a list that can get you on the path to home ownership.
This is part one of a three part series to help first time home buyers navigate through the process.
Are you ready to buy?
There are important issues to address before buying your first home. Why do you want to buy? Do you have your finances in order? How much house can you afford? The answers to these questions will put you in a very good position to have a successful buying experience.
Hire a REALTOR®
In today's world, it may seem like you don't need to hire a real estate professional to help you. After all, there are so many sources to get real estate information. However, buying a home is more than looking at pictures online. The process of dealing with contract terms, financing options, inspection requirements contract negotiating and closing costs are different with each and every transaction. And unfortunately, there is not an app for that! Choosing a real estate professional allows you to have an trained ally in the process.
Get Pre-Approved.
Imagine you find the house of your dreams. This is the one! How frustrating would it be to discover that you can't afford it? Chances are, if you are a first time home buyer, you are going to be financing your purchase. Having a consultation with a lender is a crucial first step.
Most lenders offer a prequalification letter or pre-approval letter. The letter will state the amount a lender thinks you can borrow based on your income and your credit profile without any actual documentation. Lending standards have tightened since the housing crisis and loans now require full documentation and verification of income and assets. Most sellers will only accept an offer from a buyer with a full pre-approval letter that’s based on verified information. In today’s market, it is imperative that you get pre-approved.
Not only will getting pre-approved open the door for seller that you will encounter. It will also make the buying process easier for you. Here is why: You’ll have already gone through the credit check and paperwork requirements for a mortgage, so you’ll have clarity about your ability to finalize a home purchase. If the lender finds a problem with your credit or an error on your credit report, you’ll have time to fix it before making an offer. In addition, since your documentation will already be in place, a loan pre-approval based on everything other than the actual value of the home you’ll purchase will speed up the process once you make an offer.
For more information follow this link to: http://www.realtor.com/advice/are-you-ready-to-buy-a-home/
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