The purchase of a home takes some big decision making and thoughtful planning. Long before you get to the point when you write an offer, there are many things that you will need to do in preparation. Here is a list of necessary items to do as you get yourself prepared.
Before you make any big moves you will want to be sure your credit is solid. A good credit score is important as it will dictate your ability to get financing for the new home. There are select services online that let you to check your credit or you can typically check it directly with one of the major credit bureaus. Another option is to check it when you reach out to a mortgage lender as they will pull your report.
Fix credit if necessary
If your credit needs work then addressing issues immediately is best. Sometimes there can be bad information or mistakes on your report so check to be sure there is no false info or reportings on yours.
Estimate what you can afford
Start to get an idea of what you can afford so you can see what that will buy you. There are online calculators for mortgages that help give you an idea of your monthly payment. Don’t forget to add in homeowner’s insurance, taxes, association fees and PMI if you are putting less than 20% down.
Connect with a mortgage agent
To get a firm grasp on what you can spend on your next home, contact a mortgage lender. A lender will pull your credit report, check the available rates, mortgage products and consider your income to provide you with how much you can afford for your new home.
Obtain pre-approval letter
Once your lender tells you what you can afford they will also provide you with a pre-approval letter. This is an important thing to have when submitting your offer as it will show sellers that you are serious and financially sound to make the purchase.
To avoid primary mortgage insurance (PMI) and get better a rate, putting down 20% is best. For most homes that can be a substantial amount so there are other options for putting down less. Regardless, saving your money is important as there are always other moving expenses and incidentals to pay for.
Work with a real estate agent
A local real estate agent will be your best resource for finding the perfect home. They will provide you with information on active listings as well as give you advice when it comes time to make an offer. We can service you locally, but if you are looking to relocate it would be our pleasure to locate a trusted realtor in your future destination.