Finding a home to purchase can take a while. With all of the different homes available on the market, narrowing the selection will require a lot of research.
A recent survey shows that nearly 90 percent of first time home buyers begin their search for the perfect residence online. Utilizing the power of the internet is a great way to get a firsthand look at properties in your area without having to get out of your pajamas.
If this is your first home purchase, read the information below to find out what you can expect during the journey from renter to homeowner.
Prepare Your Finances
The first logical step in the home buying process is preparing your finances. Taking a look at your credit score can give you an idea regarding how likely a mortgage approval is.
Rushing into the mortgage application process without this information may set you up for a big letdown. Ideally, you want to go into this application process with the confidence of knowing your credit score is right where it needs to be.
The answer to the question of how long does it take to buy a house is not nearly as cut and dry as you may think. However, properly preparing your finances can make the mortgage application and approval process much easier and faster.
The Pre-Qualification Process
After you have gathered information about your credit history, you need to find a lender to work with. By getting pre-approved for a home loan, you can easily narrow down the field of available properties at your disposal.
You need to keep in mind that a prequalification letter may not be the actual amount you can borrow. Having this letter is a great way to get a ballpark figure of what you can afford. This letter will also show sellers you are serious about making a purchase.
In some cases, your pre-approval letter can provide you with leverage during price negotiations with a seller. Typically, a seller will be more apt to come down to the price you want if they see a lender is already willing to give you this amount of money.
Choosing Your Dream Home
Once you have information on how much money you can borrow from a mortgage lender, going out and looking at homes in your area is the next step. Before going on any home tours, sit down and make a list of what you actually want.
This list can include everything from square footage to a pool. With this list of wants and needs, you can easily figure out if a particular home is the right fit.
Rather than trying to navigate your way through the extensive real estate options in your city alone, you need to think about hiring a professional. An experienced real estate agent will provide you with the guidance and access needed to find a great home for an affordable price.
Mortgage Approval and Closing
The last step in the home buying process is mortgage approval and closing. Having documents like your tax returns, pay stubs and credit card balances handy can help you greatly during the mortgage approval process. Generally, you will close in as little as three days after your mortgage loan has been approved.
Are you looking for a way to simplify the process of buying a home? Working with a reputable lender and an experienced real estate agent is the best way to accomplish this goal.