You are about to embark upon an adventure that will bring you great joy and cause you a bit of stress. You can limit the amount of stress by making sure you are prepared for the home buying process. Here are a few tips you can use as a road map before you begin your journey.
Tip 1 – Check Your Credit
The mortgage loan lender looks over your credit report with an eagle eye. You want to make sure it’s free of errors and negative items. The three major reporting agencies are TransUnion, Equifax, and Experian. Because of the Fair Credit Reporting Act, you can receive a free report from each agency once per year. Each report may have different information. These differences make it important to get them all. Your credit report shows the lender how reliable you are when it comes to paying your debts. Report any errors right away and take care of delinquent accounts.
Tip 2 – Build Savings
Even with a home mortgage loan, you will need to pay some expenses out of your own pocket. Consider that a down payment is typically twenty percent of the selling price of the property. The closing costs will run between 2 – 8 percent of the selling price. Closing costs include fees for inspections, appraisals, and other services. There are times when the seller agrees to pay some or all of the closing costs, but you should be prepared to pay these yourself. A nice cushion for unexpected expenses and moving costs will come in handy.
Tip 3 – Secure a Real Estate Agent
What you don’t know can cause delays and cost you money. Having a professional real estate agent on your side means you have access to someone with years of experience. Their business is making sure that your transaction is successful. Find a real estate agent that listens to what you need, meets your expectations for communication, and is skilled in negotiations. Buying a home is a big decision, and your new home is a major investment. Keep this in mind when you interview potential agents.
Tip 4 – Mortgage Pre-Approval
You may think that you don’t need to apply for a mortgage loan until you find the perfect house, but it’s a good idea to get pre-approved before you begin your home search. Getting pre-approved is beneficial for several reasons. Once you are pre-approved, you’ll know exactly how much home you can afford. There is nothing worse than finding the perfect home and then realizing that it’s way outside of your mortgage zone. Your pre-approval letter shows a seller than you can follow through with the purchase of the home and could make a difference if your offer has competition.
Tip 5 – Your Wish List
Knowing exactly what you’re looking for in a home will save you time and give your real estate agent a clear direction. Note important items like the proximity to schools, your job, and amenities within the community. Decide which items are must-haves and which ones are negotiable. It’s rare to find a property that checks every box on a wish list. Knowing ahead of time which items you consider to be a priority will help keep you focused. Providing your real estate agent with this list gives them valuable insight that saves you time.
Tip 6 – Stay Cool
Your real estate agent will do everything possible to make sure your transaction is a smooth one, but there are things outside of their power that could cause delays. Stay calm and remember that your real estate agent is there to keep you updated. There could be inspection delays or negotiation times due to multiple offers. Don’t allow things to add stress to your days. Trust your agent to advise you and work on your behalf.
The best source of information about local communities and real estate topics is your real estate agent. Contact Yamel Ramirez Maynard at 818-732-1475 or Rob Maynard at 818-917-8060 to learn more about the area, to discuss selling your house, or to tour available homes for sale.