You Want a House, But Where Do You Begin?

The stars are finally aligned and you have decided to throw your towel into the housing market.  The rates are good and with FHA loans making it easier for first time buyers to purchase a home, you start thinking, why shouldn’t I bite the bullet and take the plunge.  But, where do you begin?  Do you just go out and look at homes?  Do you go to the bank and tell them you want a mortgage?   Like so many people out there looking for their first home, many buyers are a little intimidated about how to start the whole process.   There are a few essential steps to buying a home, but it is not as difficult as some people think.  So, take a deep breath and relax.  The first thing any prospective buyer should do is get copies of your credit reports and credit score from all three credit reporting agencies.  Since lenders could use any of the three to determine your credit worthiness, you need to check them all for accuracy and fix any mistakes you may find before applying for a mortgage.  You do not want any surprises coming up when you are in the mortgage loan office.  After that, get pre-approved for a loan.  This is when the lender will look into your financial history and run your credit.  This will give you and your lender an idea of how much of a home you can afford and which mortgage will be right for you.  Just remember this is only a snapshot of your financial readiness, so don’t do anything drastic between your pre-approval and when you finally close on the loan, or you may find that pre-approval disappear.

Besides your finances, you need to consider what you are actually looking for in a home.  You should make a wish list where you have prioritized your must haves in a home as well as those things that are deal breakers that you don’t want.  Be clear about what you would be willing to compromise on if a home does not meet all of the items on your list.  You want to be happy in your home and not regret purchasing it after the fact.  Once you know what you are looking for and how much you can afford, it is now time to start looking at homes that meet your needs.   Happy hunting.