Needless to say, buying your first home is a huge investment! So many people become intimidated by the process, that they don’t bother learning about their options or how the process works. The process can be easy and fun when you have an idea of what you are doing. In this post, we will let you know what to prepare for when buying your first house!
Buying Your First House in Floresville? Here’s What to Prepare For
First, you need to ask yourself… are you ready? Like really ready?
You will want to get your finances in order and make sure your credit is in good standing. Obtain your credit reports from the three major bureaus, and address any mistakes immediately! An easy way to do this is to speak to a good loan officer as the loan officer can offer you advice on your current situation. He can guide you to the best results: if it means taking time to work on your credit or the best loan program for you based upon your credit. If there are negative marks you can easily clear up a loan officer can point you to credit repair that works and now is the time to do it. Your agent has worked with different loan officers over the years and can guide you to good ones that they trust.
Save your money, like all your money. Save as much as possible for your down payment, closing costs, and items you will need after moving in. The moving process costs money, and you will inevitably need supplies, furnishings or the ability to call someone to come trim the trees. Now is the time to be frugal with all your spending, and stock pile away what you can for your move. There is always expenses involved in moving from hiring the truck and maybe movers to possibly something as simple as painting the walls. Most homes are not sold with the refrigerator so that is an expense that you do NOT want to incur until after closing. To make sure you make it to the closing table your loan officer will tell to NOT spend any money that you don’t have to spend. Do not buy furniture or appliances before you close as the credit report is pulled again before closing and any extra debt can throw you out of qualifying for your loan.
Make sure you are emotionally ready as well. Owning a home is a huge commitment, and can be quite the shock if you’ve only rented in the past. You will be tied to this property and immediately responsible for all things related to it. Make sure this is really what you want at this juncture of your life! That said, don’t let fear keep you from getting into real estate! Most millionaires have made their money by starting with one, single investment!
Working With A Lender
There are all sorts of resources and programs available to prospective buyers. Shop around and find a lender who can get you great rates, but also one you can trust. Find a mortgage broker who is well versed in all of the programs out there. From down payment assistance to improvement grants, work with someone who knows what they are doing! Again your agent has worked with a number of lenders over the years and can point you to one they trust.
To get an FHA or Conventional Loan, you will need to have credit that is in good standing. You will need to have 2 or 3 active tradelines. If you know this ahead of time, you can prepare adequately before you attempt to get a loan. You should also have at least a three-month paper trail on all your accounts. Try not to move your money around too much, it can only add confusion to the process.
While you might find your dream home on the first shot, it pays off to look at several so you can compare neighborhoods, amenities and property values. Your dream home might be in another part of town, and you would never have known if you settled for the first one you looked at. Always make sure you have an inspection done, and your agent will work out repair costs with the seller. Your lender will also require an appraiser to fund the loan. Beware, if the house doesn’t appraise for what you are trying to borrow, your loan could fall through! Your agent will walk you through your options if this should occur. Another thing that can occur is lender required repairs that are noted on the appraisal. Again this is where your agent comes into help.
Before you make your offer, make sure you know exactly how much you want to spend. Don’t be impulsive and spread yourself thin trying to buy a property you can’t really afford. In addition to a mortgage, home ownership brings on a wealth of other new costs. If you prepare yourself and shop smartly, you will find the home of your dreams at the perfect price!