Are you a first time home buyer in Spring, Cypress, Tomball, or The Woodlands? Buying your first home is one of the most important and memorable milestones made in your life. Here are just a few steps to consider before and during the home buying process to make it a smooth ride home!
Your Credit Score Matters!
Credit scores pretty much determine the home loan you can be approved for, as well as the down payment and mortgage rate. If your credit score is below the needed score to buy a home loan then you must raise your credit score. There are many options your home loan lender can offer you if you need to raise your credit score.
Shop Around Local Mortgage Companies For Pre-Approvals and Mortgage Rates!
Acquiring a pre-approval is one of the MOST IMPORTANT and CRUCIAL steps to take BEFORE searching for a home. Pre-approvals save time, money, and sanity! Along with the pre-approval, your lender will give you an idea of what your local fees, taxes and closing costs are. Different mortgage lenders offer different rates, it is best to shop around for the mortgage company that suits your needs. They can offer different loan options, such as FHA/VA loans, State and Local Housing Programs, Fixed Rate Loans, or conventional Loans just to name a few.
Time to Begin Your New Home Quest!
Contact a notable Realtor! Word of mouth is always best to search for a Realtor. Ask people you know who recently bought homes and what Realtor they used. Your mortgage company can refer a Realtor as well since they work hand in hand with them, and of course your lender would want the best for you! Do your research, Realtor.com is a great way to find what you are looking for. Print the properties your interested in, suggest them to your Realtor to get more information.
Set Your Game Plan!
Look at as many properties as possible to give a more broad spectrum on what you are actually searching for. Know what you want, know what you need. If you need a 4 bedroom house with 2.5 bathrooms, settling for a 3 bedroom house with the idea of adding a new room can wind up being more of a cost, and add un-needed stress. Make sure to bring a pad and paper, jot down the likes and dislikes of each property. Bring a camera; take pictures of the neighborhood, backyard, landscaping etc., and of course the inside of the homes. Engage in conversation with the neighbors, ask questions about the property, what their likes and dislikes of the neighborhood are. C0nsider neighborhoods outside your desired location, shopping for a home in Spring may be what you want, but you may find the home of your dreams in Cypress with a bigger lot and lower cost. Don’t restrict yourself to one location.
Start The Bidding, and Get The Home Inspected!
Allow your Realtor to make an offer to the sellers, it is common for sellers to counter-offer. Be flexible don’t “low-ball” the price, you might end up losing the bid. Make sure you get the home inspected, there may be hidden problems such as foundation, roof, termite, and mold issues. If there are costly problems, there may be a possibility the seller pay for the repairs.
Submit Your Mortgage Application!
Since you have already gone through the pre-approval, your lender will then ask for copies of the financial documents needed. Such statements include bank account information (proof of down payment and closing costs), pay stubs from your current employer, proof of other types of income, tax statements, as well as current debt.
Once The Steps Are achieved, Get Ready to Close on Your New Home Loan, and Move Into Your New home!