Buying a home is a major life event. The excitement of owning a home leads many home buyers to make the wrong choices when purchasing. The amount of time you spend to make sure you’re properly prepared can save you time and money. The following six steps will help prepare you for what’s ahead during the home buying process.
Know Your Credit Score
The amount required to purchase a house is sometimes beyond the money at your disposal. For this reason, many home buyers seek credit facilities to meet the payment demands. If you wish to buy a house using a mortgage loan, it is important that you get to know your credit score. A credit score refers to your eligibility of benefitting from credit facilities. It helps the lenders to determine whether you qualify to be entrusted with their money. Order copies of your credit report. Make plans to repay delinquent accounts and report any errors.
The Importance of Saving Money
It is wise to start saving money the moment you develop an interest in buying a house. It will save you the stress that arises when you are required to raise a large amount within a short period. Savings also reduce the amount you borrow. You will often be required to make the down payment first. Remember, you’ll also need money to cover closing costs and moving. It’s better to save above the amount you think will be needed than to get caught short.
Finding the Right Real Estate Agent
Working with a real estate agent helps you go through the home buying process in a smooth manner. When seeking a real estate agent, you should focus on finding one that knows your area well. Find an agent who communicates at the highest level, is genuinely interested in understanding your needs, and is a strong negotiator.
Get Pre-Approved for a Home Mortgage Loan
One of the greatest mistakes that many homebuyers make is starting the home search before they get a pre-approval. They end up wasting a lot of time going through the hectic process only to realize they don’t have the money required for a house. A pre-approval determines the willingness of the lender to give out a mortgage loan. It increases the home buyer’s confidence of looking for a house, and it gives you a target price range that saves time when looking through listings.
Placing the Right Offer
After getting pre-approved, you can embark on the price negotiations of the house you would like to buy. Due to the complexity of home transactions, ensure that you consult your real estate agent while placing your price offer. It is also important to follow all the legal procedures required as violating any of them would only slow down the process. Ensure that you have outlined all the relevant details in your offer such as the address, terms of sale, the price of the house and target date for closing.
What Happens After an Offer is Accepted?
There is no better feeling than that the acceptance of your offer. At this point, you are very close to owning a house. The acceptance is, however, the start of other fundamental procedures. It encourages you to apply for your mortgage loan immediately. The loan takes only a short period to be processed since you already have a preapproval. Before paying for the house, it is wise to conduct a home inspection to assess if the house is worth the value of your money. You can then get your funds together and pay for your new house through the help of your attorney.
Your real estate agent is the best source of information about the local community and real estate topics. Give Dragonfly Group AZ a call today at 602-820-8876 to learn more about local areas, discuss selling a house, or tour available homes for sale.