Word Count: 542 words (3 minutes to read) Many things
Hey home seeker, are you looking for some simple home buying tips? We’ve got you covered!
It’s totally normal for home buying to give you the heebie-jeebies. It’s a big step and you want to make sure you go about it correctly.
We’ve compiled a list of tips to make home buying a breeze!
1) Improve Your Credit Score
Prior to buying a home, you’ll want to make sure that your credit score is in a good place. This will allow you to qualify for more loan options, lower your interest rate, and potentially pay off your home faster.
2) Set Aside a Down Payment
Before buying a home, you’ll want to set aside a reasonable down payment. Most loan programs require at least 3% – 3.5% of the home’s sales price as their down payment. The larger your down payment is, the lower your LTV (loan-to-value) ratio will be. In fact, having at least an LTV ratio of 80% (20% down) will eliminate the need for PMI (private mortgage insurance).
3) Get Pre-approved
Ready to start touring homes? Get pre-approved first! A pre-approval is a document that shows sellers that you are qualified to buy their home. It tells you the amount of money that you are qualified to borrow based upon your credit history, income, and debt.
4) Find a Suitable Loan
It’s important to find a loan that’s right for you. Different banks, mortgage lenders, and brokers offer different loan programs. Research which loan program is most suitable for your financial situation then find a mortgage provider that offers that program.
5) Use a Reliable Realtor
Your Realtor will be your guide throughout your whole home buying journey. Find a Realtor that understands your needs and your local housing market. Your Realtor should also help you to stay within your budget and give you honest and credible information on the homes you’re looking at.
6) Hire An Inspector
Once you’ve found your dream home, it’s time to make an offer! Your Realtor should walk you through the contract and make sure your offer stands out amongst the competition. Once your offer is accepted, hire an inspector to do a thorough inspection of the home to let you know if the home has any issues. You don’t want to move into a home with any surprises!
7) Save Up for Closing
During this final stage of the buying process, you will complete various paperwork to finalize the home purchase. You may also have to pay closing costs so it’s best to save up for those costs in addition to your down payment.
7 Simple Steps for Home Buying
After reading these 7 simple tips for home buying, you should feel more confident in becoming a home owner. If you need any assistance in the buying process, contact us! Our Realtors and Mortgage Bankers work around the clock to make sure that you have the best home buying experience.
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