If you are planning to buy a home, there will be many questions you will be faced with such as: Which Realtor should I choose? How much can I afford? What type of house do I need or want? How much do I need to put down? Real estate business is becoming more complicated and detailed, that is why it is in your best interest to work with a broker that will represent you.
A little planning and some help can ease the stress and hassle for people looking for their first home. Here are some important steps:
1. Get pre-approved by a loan officer.
This will help you determine how much you can afford and what your down payment and closing may be.
2. Clean up your credit.
Preferably, you should have a clean record with no bills overdue more than 30 days within the past year.
3. Save for your down payment.
Most conventional loans require down payments of 5-10% but FHA as little as 3 % down, and VA require no money down.
4. Avoid changing jobs.
This can create a problem in qualifying for a loan especially if the new job is in a different line of work or has lower pay.
5. Avoid making major purchases.
Buying a new car, furniture, appliances or new credit card debt before your loan is approved can be a problem.
6. Do not switch banks or move money around.
This can cause problems with the verification process. Deposited funds should be "seasoned" for at least 60 days.
7. Choose an Agent who represent buyers.
Some buyers leave their name with several Realtors and although it may seem to be to the buyer's advantage to have a number of people to work with, it is usually a very ineffective approach. You need the total commitment of one person who knows and understands your particular situation. Let the agent know you will work with him/her exclusively as long as you see the effort required to get the job done. If a Realtor knows that you will be loyal to him or her, you will provide all the motivation that is necessary. Your Realtor can enthusiastically go to work for you knowing that all the effort put in will be a success!