Buying a Home 101
Most people dream of owning their own home one day. It is part of the American Dream, with just the idea of being a homeowner conjuring up idyllic mental images of white picket fences and the family dog playing in the yard. If you’re thinking about buying a home, you need to make sure you’ve got all of your ducks in a row in order to avoid hurting yourself financially.
The first step to take is to check your credit score. Most people require a loan to buy a home, and you will get a better mortgage if your credit is in good shape. Start by getting a copy of your credit report and examining it closely to check for problems. If you discover any issues, take steps to correct them right away before attempting to get your loan.
The next step to take has several layers. Before you begin the actual house hunt, you need to figure out what you can afford. There are many tools online that you can use as a tool to determine this, by calculating a figure based on your personal income, expenses and other circumstances. In addition to that, it’s wise to get a professional real estate agent that you can trust to help you make the right decision for you and your family. Along with the calculator and agent, you’ll want to get pre-approved for your loan. Getting pre-approval will save you the hassle of looking at houses you may end up being unable to afford, and should not be mistaken for getting pre-qualified. Pre-qualification is a quick glance at your finances, whereas pre-approval is an in-depth examination and therefore much more accurate.
Once you’ve got those things in order, you can begin the hunt for your dream home. Do not be tempted to aim for a house out of your price range, but do make sure that the home you finally choose is the one you want – in a good neighborhood, with good schools, and in good shape. The “good shape” part is definitely important, so you do not find yourself having to make expensive repairs down the road that end up making your great deal not so great after all.
Buying a home is a big step and an exciting time in anyone’s life. With careful preparation and attention to detail, you’ll end up with the home that you can afford and suits you perfectly, without any unnecessary grief.