Buying a home is a big adventure and while it's exciting, it also brings some stress into your life. If you are ready to start your home search, it is important that you do a little work before you even go out and start looking at homes. Here are few things that you should do before buying a home.
Many financial companies advertise their lending services and talk about loan pre-approval or pre-qualifying for a loan. Pre-approval and pre-qualifying are not one and the same. Many lenders offer quick pre-qualifying services via email or phone calls. Pre-qualifying gives you a general idea of what you might be able to afford, but it is never a guarantee that you actually can obtain a specific mortgage loan amount. Still, it usually is a quick and free process that can help you think about your potential home buying budget. When you get truly serious, you need to get a loan pre-approval.
The pre-approval process is longer and includes actually sitting down with a lender and sharing your credit scores, your income, your expenses and other financial information. You will pay a fee for a pre-approval application, as well. However, being pre-approved for a loan makes the buying process easier because you don't waste time looking at homes that you cannot afford and once you find a home, a pre-qualified buyer looks much more attractive to a seller. So if a bidding war ensues and you are the only pre-qualified buyer, this gives you the advantage.
In theory, the whole process of pre-approval begins many months before you meet with a lender. In the six months leading up to buying a home, this is the time to strengthen your credit score and save up money for your down payment, your closing costs and other fees associated with buying a home. Obviously for many buyers, your down payment will come out of the sale of your current home. However, the months prior to buying a home are scrutinized by lenders so don't open new credit card account or purchase any big ticket items prior to buying. This is a time to look as steady and responsible as possible.
In addition, you need to do some homework before you meet with a real estate agent. This includes providing your pre-approval information as well as the price range in which you are looking. You also need to come up with a list of must-have home features and a list of items you don't like. When it comes to must-have items, you can include many home features that you want and like, but be sure to be clear about the most important items such as size of the home and location. It's rare to find a home that is completely perfect and meets 100% of your needs, but there are probably two or three items upon which you are not willing to compromise. Just be realistic and understand that there is no such as thing as the perfect home, but there are lots of great homes to consider.
When it comes to a realtor, choose someone with experience, particularly in the areas in which you really want to live. If you are hoping to buy a house in the scenic Texas Hill Country, consider contacting Nixon Real Estate. For nearly 40 years, the realtors at this Fredericksburg real estate firm have been find Kerrville real estate, Fredericksburg homes for sale as well as San Antonio real estate and homes throughout Hill Country.
Many financial companies advertise their lending services and talk about loan pre-approval or pre-qualifying for a loan. Pre-approval and pre-qualifying are not one and the same. Many lenders offer quick pre-qualifying services via email or phone calls. Pre-qualifying gives you a general idea of what you might be able to afford, but it is never a guarantee that you actually can obtain a specific mortgage loan amount. Still, it usually is a quick and free process that can help you think about your potential home buying budget. When you get truly serious, you need to get a loan pre-approval.
The pre-approval process is longer and includes actually sitting down with a lender and sharing your credit scores, your income, your expenses and other financial information. You will pay a fee for a pre-approval application, as well. However, being pre-approved for a loan makes the buying process easier because you don't waste time looking at homes that you cannot afford and once you find a home, a pre-qualified buyer looks much more attractive to a seller. So if a bidding war ensues and you are the only pre-qualified buyer, this gives you the advantage.
In theory, the whole process of pre-approval begins many months before you meet with a lender. In the six months leading up to buying a home, this is the time to strengthen your credit score and save up money for your down payment, your closing costs and other fees associated with buying a home. Obviously for many buyers, your down payment will come out of the sale of your current home. However, the months prior to buying a home are scrutinized by lenders so don't open new credit card account or purchase any big ticket items prior to buying. This is a time to look as steady and responsible as possible.
In addition, you need to do some homework before you meet with a real estate agent. This includes providing your pre-approval information as well as the price range in which you are looking. You also need to come up with a list of must-have home features and a list of items you don't like. When it comes to must-have items, you can include many home features that you want and like, but be sure to be clear about the most important items such as size of the home and location. It's rare to find a home that is completely perfect and meets 100% of your needs, but there are probably two or three items upon which you are not willing to compromise. Just be realistic and understand that there is no such as thing as the perfect home, but there are lots of great homes to consider.
When it comes to a realtor, choose someone with experience, particularly in the areas in which you really want to live. If you are hoping to buy a house in the scenic Texas Hill Country, consider contacting Nixon Real Estate. For nearly 40 years, the realtors at this Fredericksburg real estate firm have been find Kerrville real estate, Fredericksburg homes for sale as well as San Antonio real estate and homes throughout Hill Country.
About the Author:
Pammy McGrath enjoys reading real estate blogs. If you are searching for licensed real estate Fredericksburg TX agents, or to find a Fredericksburg homes for sale, please check out the NixonRealEstate website today.
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