To the first-time homebuyer, getting the keys to that first home can be a daunting and challenging process as well as a little confusing. Here are 5 tips that can help you get started to becoming a homeowner.
1. Get Your Credit Score
The first step is to obtain and carefully review your credit reports. Check over your entire report and highlight any mistakes and errors that need to be corrected. There are several ways you can get a copy of your credit report, and under the FACT act you are entitled to a free report from each of the three nationwide credit reporting agencies each year: Equifax, Experian, and TransUnion.
You can take advantage of this free credit report at annualcreditreport.com or if you are purchasing or refinancing within the next six months, I would recommend talking with me directly at 214-770-1499 or via email at jim@mortgagebyjim.com. We can then schedule a time to talk and obtain a full credit report as well as determine what if any strategy is needed to improve your credit score.
2. Review Your Finances
Do you have any credit card debt? How much is left on your student loans? How do you spend your money? What is your household income? Are you planning any large purchases? Do you have a savings account? How much do you have for a down payment? These are all questions that need to be answered.
3. Get a Conditional Loan Approval
There are many steps in the home buying process where having a team of professionals guiding you through those steps is of great help. There is one step, unless you are paying cash, that will provide you with immense negotiating power and peace of mind, and that is getting conditional loan approval before you begin shopping for your new home.
A conditional loan approval allows you to easily determine how much home you can afford. This assists your real estate agent in negotiating when it comes time to present a contract offer and causes listing agents to pay attention to offers from approved buyers. Working with your loan officer to get a conditional loan approval also speeds up the closing process and saves you a potential headache by knowing the loan terms, conditions, and financing strategy in advance.
4. Plan Your Down Payment
It can take some doing to get together a down payment for a new home. The amount of your down payment can figure heavily into the success of your home-buying process, and directly affects both your financial future as well as what you can expect to pay each month on your home loan.
There are different options when planning a down payment, but it’s important to discuss your concerns and questions about your down payment with your lender before you begin the home-buying process.
5. Be Prepared for Anything
Finding a home can be a frustrating experience for any first-time homebuyer, but with preparation and the right team around you, the road to your first home can be rewarding.
If you’re thinking of purchasing a new home in Texas, feel free to call me at (214) 770-1499 or get started by completing the form below. I would be glad to serve you with your real estate financing needs.