You’ve decided to purchase a home. This means you’ve got exciting days ahead! Keep that excitement alive and stress at bay by learning more about the home buying process. Nothing zaps the thrill of the house hunting adventure like fear of the unknown. Let’s take a closer look at the six steps to buying a home before you begin your home search.
💯 What credit score is needed to buy a house?
The credit score required for a loan depends upon the type of loan. Traditional mortgage loans usually require a score of 620 or above. If you’re hoping to get an FHA loan, you’ll want a credit score around 580. While it is possible to get a loan with a credit score between 500-579, you’ll find it more difficult to secure, and you may end up paying extreme interest rates.
Each year, you’re allowed a free credit report from each of the three main reporting agencies due to the Fair Credit Reporting Act. Take this opportunity to order a report from Experian, Trans Union, and Equifax. You’ll want all three reports, so you can compare them for information and errors. Look for false or incorrect information. Make a note of any delinquent accounts. Report errors to begin a dispute process as quickly as possible because they can take time to resolve. You’ll want a workable plan to take care of any past due accounts.
💰 How much money should I save to buy a house?
Traditional home mortgage loans often require a down payment of 20 percent of the sale price or the home or more. Most people understand that a down payment will be required and save for that purpose. However, there are other costs associated with buying a home. You’ll want to have money on hand for closing costs, upgrades, moving costs, and other things that may pop up during the home buying process. It’s better to have more money than needed rather than to get caught short and cause a delay in the purchase of your new home.
🧐 Where can I find a real estate agent?
You’ve come to the right place! We can’t wait to help you find the perfect home that fits your needs. We suggest that you sign up for an account that allows you to save your property searches and receive updates when a new property hits our database. This gives you an edge over the competition, which could make all the difference in the world when it comes to today’s real estate market.
📝 Why get pre-approved for a mortgage loan?
Getting a mortgage loan pre-approval early in the home buying process is a great idea. This pre-approval will save you time and is beneficial for several reasons. When you begin looking at homes, it’s easy to get swayed by all the beautiful amenities. There’s a chance that you’ll fall in love with a home that you can’t afford. Having a pre-approval for a mortgage loan places a firm price range in your mind as you look at properties. This saves you time and prevents disappointment.
When it comes to buying a home in today’s market, the competition is fierce. You want your offer to stand out when it hits the seller’s table. A pre-approval could sway the seller to look at your offer more favorably because it shows that you are serious about the purchase and you have the real ability to complete the sale.
💲 How do I make an offer on a house?
Once you’ve chosen the house that makes your heart skip a beat, it’s time to place an offer. We’ll be with you every step of the way as you move through this step. You’ll want to compose an offer that catches the seller’s attention and makes sense when you consider current market trends, the amenities of the property, and the asking price. We have lots of experience in creating appealing offers, and we’ll present the offer to the seller’s agent once yours is finalized.
💵 What happens after my offer is accepted on a house?
The seller will either accept your offer, decline your offer, or offer a counteroffer. If a counteroffer is given, you’ll have a chance to accept or try to negotiate with the seller. We handle the negotiation process on your behalf.
Once your offer is accepted, you are well on your way to closing day. Your lender will order an appraisal and any inspections that are required. If inspectors find any issues, you’ll have a chance to go back to the negotiating table over the terms of the contract. If there are no issues, you’ll move forward towards closing day.