Excitement is usually the first emotion a new home buyer feels when they’ve decided to purchase a home. That exuberant feeling can quickly turn to frustration if they go into this process without simple but detailed knowledge about purchasing a home. There are things that one should know before diving in.
One Year Before Purchase, Get Things In Order
The average first time home buyer hasn’t a clue about what is needed to begin a home purchase. If you are diligent, it may not take as long as a year to gather all the information and documents required. But here are some things that will help you get started.
- Check Your Credit – Pull a credit report and know your credit rating.
- Know Your Budget – Assess your assets and liabilities, i.e. savings account, bonds, credit card balances, etc. From this information you will know what you can afford to buy.
- Organize Your Documents –You will be asked to provide bills, bank statements, employment stubs, credit card statements, any documents to substantiate your ability to maintain a mortgage. When you have these items organized and ready for review, that’s less stress on you. It also demonstration to the lending professional you are serious about home ownership.
- Get Prequalified and Pre-Approved – There is a difference between these two. The gist is, Pre-qualification is an estimate of what you can afford. A credit report can gage this estimate. Pre-Approval is more substantial, your current and past finances are documented by a mortgage or financial lender. From the information you provide and research they have gathered, they will tell you your approved lending amount 11 Things A Buyer Should Know In A Seller’s Market- Part One.
Find A Trusted Real Estate Agent. Work with A Smart Realtor®
There are many qualified real estate agents out there but find one that you wouldn’t mind spending time with—find a friend in the business. In order to do so, you need to do a little research. Search the web for real estate agent in the area in which you want to buy. If they have a website, pull it up and take a scan. Look for professionalism, also take notice of the areas they have sold houses. Then call, don’t be put off if you get their voice mail. Often times, the best real estate agents work from their car. They are on the road doing research of their own and helping other home buyers and sellers. A good real estate agent will utilize many tools in your home search, including searching for your ideal house via the Multiple Listing Service (MLS). A great agent will preview several properties they believe meet your criteria, including drive through communities to get a feel for neighborhoods. Which bring us to the next step…
Know Some Real Estate Terminology
After you have found that just right real estate agent, ask them questions about some real estate jargon you should know. Terms such as IR, ARM, PITI, PMI, FHA and MLS – Multiple Listing Service is one important term to know, MLS is a digital server that list homes for purchase. Become familiar with these types of terms so that you are knowledgeable and prepared.
Don’t Be A Frustrated Home Buyer
In this case patience is more than a virtue, if you’re not patient—it can be a deal breaker. House buying is a process that can easily turn into a chore. When it comes to buying a home, preparation and research is your key to happy house hunting.