Where should you start when it comes to preparing to buy a home?
Before purchasing a home, your first priority should be to settle your finances. Pay your debts down and save your money.
If you know you need to save money first or give yourself time to get things in order, also use that time to clean up as much debt as possible and improve your credit rating.
It is a common requirement to put down 20% for your down payment, therefore it is pertinent that you save, save, save!
Your down payment is typically determined on a case-by-case scenario. But there are some commonalities between different lenders that often require the same prerequisites, for instance, some banks will require only 5% down. It’s best to shop around and find the best quote for you. With that being said, I’ll wrap this portion up by saying GET PRE-APPROVED.
By the way, “pre-approval” and "pre-qualified” do not have the same meaning. I understand that there may be common confusion between the two. Allow me to put it in Laments terms. A pre-qualification gives you a rough estimate of what you can borrow. A pre-approval declares how much specifically, you are eligible for.
Often times, before you are able to view a home, most listing agents require proof of funds or a pre-approval letter. It is important to get this part of the process completed as soon as possible.
The market is moving fast, and with proof of funds or a pre-approval letter, the chances of you getting your dream home increase dramatically! Not to mention, the seller will understand that by you having those funds prepared prior to attending your first open house, you are a serious candidate. The best part about getting your pre-approval letter early is that you will have a realistic idea of your future home price range and what you should be shopping for.
Speaking of price range, there are other fees to budget into your home purchase. There may be some unforeseen fees that arise, but here are the most common fees you’ll come across:
· Home repairs
· Contingency fees
· Closing Costs
· Concessions
· Inspections
· Insurance
· Fees associated with loan
The best thing I could suggest to any future home buyers is to call an expert. Use this blog as a guide and ask a REALTOR® how you can prepare to buy your first or next home. Create a checklist and complete the small steps mentioned here and you will be on your way! Stay tuned for more on all thing’s real estate.
Click this link if you are interested in having a conversation about taking the first steps in the home buying process.
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