Your Checklist Before You Buy Your Next Home

Your Checklist Before You Buy Your Next Home 

The time has come and you are ready to buy a home. Take a look at this checklist for helpful information.

1. Reduce Debt & Improve Your Credit Score: Will you need a mortgage loan? Before looking for a home you should run your credit report. You can then discuss your FICO credit score with the bank or lender you contact for a mortgage preapproval. Becoming knowledgeable about your credit standing is important. Your credit score will influence the interest rate of a loan and will determine the loan program you can qualify for.

2. Save Money For The Down Payment: While it is possible to purchase a home without a 20% down payment it’s best to get as close as possible. This will allow you to potentially have a lower mortgage rate and payment. If you don't have sufficient funds for a 20% down payment you may consider a VA or FHA loan that offers a lower down payment. There are also low down payment conventional loan programs for good credit borrowers. Make sure to speak with your bank or lender for more information about mortgage loan program availability.

3. Be Prepared: Yes, there is the purchase price of the home and once you and your Realtor negotiate the best price, there are additional cash out of pocket costs you should consider and be prepared for. These include the deposit, home inspection fee, moving expenses and other closing costs. Your Realtor can help you understand the expense of buying and owning a home.

4. Get Preapproved: If you need a mortgage to make a home purchase, a mortgage preapproval is the first thing you should do when preparing to buy a home. You can contact your bank or a mortgage company for this service. The preapproval is based on your actual income, debt, and credit history and once you get approved for a mortgage loan, you'll know exactly how much can spend. Also your Realtor will require a preapproval letter and proof of down payment funds (cash in bank) before writing an offer. These letters demonstrate to your Realtor and the seller of the home that you are capable of making a purchase. They also aid in negotiating the best purchase price. You will not considered as a serious buyer unless you're approved in advance.

5. Set A Realistic Home Buying Budget: By getting your finances in line before your first home showing you know the price range of a home that you can actually afford. It is important to set a realistic budget that fits your income level and characteristics you want in a home.

6. Find an Agent You Trust: Keller William Realty agents are trained professionals that are associated with one of the nations leading Real Estate brokerages. Our team of Realtors are ready to assist with your home purchase.

As you begin the process to find your next home checking these items off your list will provide you with a more successful home buying experience. Our team is here to help you! Let us know the area and/or neighborhood you are looking to live in along with your top needs our team of professionals will assist with finding your next home.