What You Should Know Before Buying A House
Buying a home, especially if it’s your first, is an incredibly exciting process. Unfortunately, too many people jump into the experience without being properly prepared. This can lead to disappointment, frustration, and a home that you’re not really happy with. Before you begin your home-buying experience, here are four things you should know that will help the process be a smooth and satisfying one.
Your Credit Score
Your credit score will have a big impact on how much you are pre-approved to spend on a mortgage and what your interest rate will be. It’s better to know what your score is now before your loan officer does it and you get a nasty surprise. If your score is low, you might want to consider holding off on the home-buying process until you can raise it. You can easily raise your credit score by paying off credit card debt, paying bills on time, and avoiding opening new credit.
What You Are Pre-Approved For
There’s nothing more disheartening than finding the perfect home only to realize you can’t afford it. That’s why it’s imperative to get pre-qualified for a loan before you begin looking for a home. That way, you’ll know what your budget is and you won’t get your sights set on a home you won’t be able to buy. Pre-approval also helps you quickly close the deal on the home you choose before anyone else can snap it up.
What You Need to Put Down
Unless you qualify for a VA or FHA loan, you will need to put some money down on your new home. The amount will vary depending on the loan you get and the price of the home, but it’s usually somewhere between 3-20%. If you don’t have savings put away or have a plan to get this money elsewhere, you might need to wait to buy your home until you do.
The Importance of a Good Realtor
Did you know that using the services of a realtor is free if you are the buyer? Realtors make their money from the sellers, so there’s no reason not to use one when you are looking for a home. A good realtor can narrow down choices, point out potential issues in homes you look at, and make the process a much more efficient one.
Buying a home should be a fun and exciting experience. When you know your credit score, are pre-approved for a loan, and use a good realtor, you’ll be able to quickly and easily find a home you’ll love and close the deal. If you have any questions about buying a home, please visit our website.