Every American will know buying your first home can be the most important financial decision of your life. It can be emotional and take quite a bit of time. And of course it can be difficult financially. Help however, is at hand.
So let’s take you through the complete process in the hope you will be very clear about what’s involved.
First things first!
Before we can even begin to move forward we need to ensure our finances are sorted and in complete order! Failure to do this will mean we can’t buy our first home – simple as that!
Sit down with a drink and look at your budget – your income and expenditure – then you’ll be in a position to know if you can afford your first home. Don’t estimate anything and get it in black and white. You must also get a copy of your free credit report, if this is very good then you may even get better terms on the mortgage? Do this as professionally as you can – it’s absolutely vital to get things in order at this stage!
Research And More Research About Lenders And Mortgages
Take a look at the internet and the shops in the mall, and make yourself aware of the types of mortgage lenders around you. Read up as much as you can on the mortgage process and get used to the terms and the steps involved. If you’ve done plenty of research then you’ll have the best advice and this means you can make better decisions.
You may even in certain circumstances be able to negotiate a better deal! The more you do the better it will be. Then take a deep breath and move onto the next stage and get pre-approved for a mortgage!
Pre-approval simply means working out how much a buyer can afford to borrow from the lender. It may not always be set in stone so be aware of this. Any lender involved can work out this figure by reviewing the financial records of the borrower – debt-to-income ratio, credit score and general outgoings all come into this process.
Becoming pre-approved for a mortgage is a very big step as it gives you the rubber stamp ready to make an offer for a home. The fact is sellers are more likely to listen to an offer from a pre-approved-buyer then anyone who hasn’t fully gone through the process. Now you should smiling – but there’s something very important you need to do at this stage!
Hone Your Needs!
It’s so important to work out what you really need and what you don’t, doing away with the latter, as this can help you financially. This will enable you to get the home you need for practical terms and not the home we all dream of having but can’t afford! You have to be realistic. Do you need somewhere in the city, near a school or on the city outskirts. Do you need a garage or a garden etc. All of these things are vital to the process and you’ll be glad you carried them through!
Check out this: homebuying.about.com/od/buyingahome/qt/0307Buyinghome.htm