As we begin moving into a buyer’s market for homes, you might be considering finding a new house. Maybe you are a first-time buyer. Maybe you want a second home or even an investment property. In any case, here are the three steps you want to make sure you follow in buying your new home.
Step One: Do a Financial Check-Up
Chances are, you’re going to need a mortgage loan for a new home – most people do. Before you do anything else, go over your financials. Remember, you are eligible for a free credit report every year. Annualcreditreport.com will help you get your credit reports without signing up for services you don’t want. If you do want a service to help you monitor your credit, consider either a free service like Credit Karma or if your bank offers free credit monitoring (some credit unions do) then use their service.
Speaking of banks, go through your bank and credit card statements. Review your loans as well. This is a good time to look at what you can and need to pay off. Make sure your bank account is in good standing and keep it in good standing. You want to show regular deposits and good spending habits, so avoid over-drafting your account.
Important Note: When you pay off your credit cards, don’t immediately close them. When you speak to a lender, they will discuss with you your available open credit and what effect it has on your mortgage options. You can decide from there whether to close cards or lower credit limits.
Step Two: Get Pre-Approved for a Loan
I can’t stress enough how important it is to work with local banks or small company lenders. If you bank with a small regional bank or with a local credit union (even better!) then talk to them about mortgage options. Research other small lenders in your area as well. Shop around for a good lender who will give you the best rate and has the best policy for things like early repayment.
Step Three: Find a Local Real Estate Agent with Experience
You want to find a real estate agent who will help you find the best home for your family and budget. You also want to make sure that your agent will go to the offer table with your best interests in mind, not their pocketbook or the seller’s interests. They should represent only you in the buying process and know the area well.
Oh! One more thing. This is probably the most important step …
Step Four: Look for Your Dream Home
Research the areas that you want to live in, and check out what’s available in the area for shopping, entertainment, and emergency needs. Then look for your ideal home. Remember, none of the above steps matter if you can’t find the house you want to invest in.
Are you looking for a mortgage loan? Can we help you or your clients reach their dream of home ownership? Go to www.meetwithmarat.com to schedule an appointment and talk about your or your client's options.