Buying a home is a major milestone. The very thought of buying a home can leave you with feelings of excitement and even anxiety. It is, after all, a long-term commitment that cannot be taken lightly. But, when you do decide the time is right for buying that home, following the steps below will help the process move along more smoothly because you’ll know what to expect.
💯 What Credit Score is Needed to Buy a House
You may not realize it, but your credit score is quite important when you are going to buy a house. Therefore, the first thing you need to do is to check you credit score and report. If you see any incorrect information on your report, dispute it. Once you’ve verified that your credit report is accurate, then you can take a look at your score. This is what your lender is going to look at to determine if you are financially responsible enough to take out a home loan. Ideally, your credit score should be 700 or above to get a good loan with favorable terms. If it is below 700, you might want to work on bringing it up before you apply for a home loan.
💰 How Much Money Should I Save to Buy a House
Unfortunately, nothing in life is free. This includes buying a house. Even though you’re going to get a loan to pay for the house, you likely will have upfront costs. When you apply for the home loan, your lender will give you a Good Faith Estimate (GFE). This document will detail all the costs for which you’ll be responsible and when they will need to be paid. Some will be paid at closing while others will be due before closing. Also, take into consideration the down payment you may be required to make. You’re going to need cash so it’s a good idea to start saving as soon as you decide you’re going to buy a home.
🙋♀️ Finding a Real Estate Agent to Buy a House
You need to choose a real estate agent with whom you’re comfortable and that you trust. You can perform an internet search to find an agent. Or, you could attend an open house to meet the agent who’s hosting the open house. You can also ask friends and family for a referral if they have an agent they use. You can interview a few agents until you find one you like. Ask them about their experience and education. A good agent will have a good reputation in the real estate industry and can provide you with references.
📝 Why Get Pre-Approved for a Mortgage Loan
Do not make the mistake of going out and looking at homes when you have no idea how much money you’re able to borrow. Many have made this mistake and then suffer the disappointment of finding out that the house they had their heart set on is too expensive and they can’t get the loan. Get pre-approved before you start looking so that you’ll know what price range you need to be in.
💵 How to Make an Offer on a House
Once you find a home that meets your needs, it’s time to make the offer. Your real estate agent can help you formulate an offer that’s fair and has a good chance of being accepted. The seller usually has some room to negotiate which means you don’t necessarily have to make an offer for the asking price. However, you don’t want to make an offer that’s too low because the seller may not take you seriously and move on to the next offer. Once you determine the right offer, your real estate agent will present the offer to the seller.
💲 What Happens After an Offer Is Accepted on a House
Hopefully, you’ll get the news you’ve been waiting for – that the seller has accepted your offer. Once your offer is accepted, the seller’s attorney will draft a purchase agreement. You will have a chance to review the agreement. This would also be the time when you can add conditions, such as repairs, to the contract. Once everyone agrees and the contract is signed by both parties, you will move on to the closing.
Buying a home can be frustrating at times, but in the end, it is rewarding. Although you are making a long-term commitment, you will have a piece of property that you can make your very own which can be very satisfying.
Your real estate agent is the best source of information about the local community and real estate topics. Give K Tompkins Real Estate Group a call today at 770-843-8184 to learn more about local areas, discuss selling a house, or tour available homes for sale.