How to Prepare Before Your Home Search
Anyone who has gone through the house-hunting process knows that calling it a challenge is a bit of an understatement, especially the first time. Though no two buying experiences are the same, the right preparation and mindset can and will make it much easier to find your dream home with relatively little stress. To help you survive the process, I’ve put together a short guide on how to prepare before your home search.
1. Find a Real Estate Agent
Trust me when I say you need a good real estate agent. There is no reason you have to go through this process on your own. Having a real estate agent can make the entire process more manageable. Referrals are often a good place to start; talk to family and friends to begin your search, and of course - I will always be here to help you find your perfect home.
Don’t be afraid to interview multiple real estate agents. You need to work with someone you trust and someone you believe understands your needs. I am always happy to interview with prospective homebuyers - all you have to do is shoot me a message and I’ll take care of the rest.
A good real estate agent will help you walk through the following steps.
2. Shop For a Mortgage Lender
Mortgage lenders set the terms, interest rates, repayment schedule, and other key aspects of your mortgage. When you meet with a mortgage lender, they will ‘pop the hood’ on your financials, so to speak, and determine your eligibility for a mortgage. It’s ok to shop around for the right lender, and once you find the mortgage that’s right for you, secure pre-approval. Being pre-approved for a mortgage will make sellers take your offer more seriously, as it means that a lender is committed to providing you with home financing up to a certain amount.
I can connect you to a reputable and reliable mortgage lender if you need a referral.
3. Check Your Credit Score (and Work on It If Necessary)
This is typically something my clients will review with myself and a mortgage lender. This allows us to check for any issues on your credit report that may prevent you from getting the best possible loan terms. If there are any negative spots on your credit report, we can come with a plan of action to address those problems.
4. Figure Out Your Budget
Now it’s time to determine how much home you can afford. Several online calculators out there can help you determine your monthly mortgage payments, adjusting for variables such as the size of your down payment, the type of mortgage you will qualify for, and current interest rates. While this won’t be an exact estimate, it can help put you in the right mindset for the rest of the process.
Note: We will work on figuring out your actual budget once we have spoken to a mortgage lender and addressed your credit report.
5. Start Saving
To get the best rates possible, you’ll need to make anywhere from a 3.5-20% down payment on a home. In June, the average home price in Houston was $298,000, which at its lowest would require a down payment of $10,430. Luckily, there are many resources out there to quickly help you save for the home of your dreams.
6. No Major Changes
This is one of the most important steps. Under no circumstances should you make any major life changes, especially financial ones. Do not quit your job or buy a new car or even get new furniture. Buying a house is a sensitive process, and one wrong move can make you ineligible for the home loan you need.
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If you need more guidance going through these six steps please let me know! I am more than willing to guide you through every step of the home buying process.