- Category: Real Estate
- Created on 11 May 2014
- Hits: 895
Traditionally, the spring and summer can be the most active period for the residential real estate market. During these seasons, the weather is warmer and children are on summer break from school, which makes it easier for people to move into a new home.
Below are three steps that will help prepare you for buying a home.
1. Get Pre-Approved For A Loan Selecting a Real Estate Agent can be a great starting point. A Real Estate Agent can refer you to a reliable Loan Officer who can conduct a pre-approval process for a loan. The pre-approval process allows a potential homeowner to find out how much of a home they can afford.
A pre-approval is a preliminary commitment from a lender, in writing, stating that a borrower will qualify for a particular loan amount based on income and credit information under the lender's guidelines. There are many reasons why you should get pre-approved early in the process of purchasing a home. One of the reasons is that you will get an accurate idea of how much you can afford. This helps to ensure that you only view houses that are truly in your price range. In today’s home market, if you make an offer on a house without a pre-approval, your offer will not be taken as seriously as an offer from a person with a pre-approval, and you may miss the opportunity to own the home of your dreams.
2. Prepare For Down Payment Homebuyers should prepare by having funds saved or set aside for a down payment. In some cases, the down payment for your new home can be gifted from a relative. The down payment is a percentage of your home’s purchase price that you pay up front when you close on a home loan. It is viewed by lenders as your investment in the home. Mortgage lenders, however, will grant home loans to qualifying home buyers with a down payment of as little as 3 to 5 percent of the purchase price, if the mortgage is insured, such as FHA loans. FHA mortgage guidelines offer a more liberal approach to credit scores and down payments. The FHA will typically require a down payment of just 3.5 percent in U.S. markets. Conventional loans can sometimes require 5 to 10 percent as down payment. In fact, home loans with down payments of less than 20 percent are becoming increasingly popular.
3. Choosing A Home The home you choose to live in should meet your criteria. A home is more than just a collection of bedrooms, bathrooms and kitchens. It can be helpful to list the features and benefits you want in a home. Therefore, it’s important to know what options are essential for you and your family. A home buyer should consider such things as pricing, location, size, amenities, school district and distance from work.
Nita Gray Real Estate Professional Website: PalmerHouseProperties.com/Nita-Gray