If the time has come for you to purchase a new home, you’ll need to make a few important considerations. Unfortunately, the home buying process isn’t as easy as finding a home you like, paying the seller, and moving in.
Rather, there are many steps in leading up to the actual purchase of a home, each of which need to be carefully navigated so that you don’t end up in a tough situation.
For those considering starting in on the homebuying process, consult the following guide to help you along the way!
1. Review Your Credit Report
For those who have never needed to check their credit report, there are a few things you should know.
First and foremost, your credit report is a reflection of how likely you are to be able to pay back money you owe to others. Therefore, lenders use this measurement, more than anything, to decide on your mortgage rate.
Second, your credit report is maintained by the three major credit bureaus: TransUnion, Equifax, and Experian. Each of these entities has their own website and you should check your report across all three of these to make sure the information is consistent.
Last, but not least, your credit report can often contain a multitude of errors. Many credit reports will have duplicate addresses or other issues which can lead to a worse credit score. If these errors aren’t corrected, your loan application will look much worse to lenders and you may have a very tough time receiving a good mortgage offer.
On each of the three credit bureau websites, they list the specific steps you need to take to correct any errors. But be aware: it can take a few months for any of these changes to take effect.
2. Define the Amount you Can Afford
Above almost any other consideration, you’ll want to make sure you buy within your means. Purchasing a home that is too expensive can lead to devastating financial issues and even homebuyer’s remorse.
Don’t let this happen to you! Be sure to work out exactly what you are able to afford so that you don’t start touring homes that are going to cause you problems down the road.
3. Tour Prospective Neighborhoods
Naturally, the house in which you’ll be living is one of the most important considerations you’ll need to make. However, you’ll also want to thoughtfully tour your new neighborhood. If you need to take a bus to get to work, but there is no bus line anywhere near your new home, it may not be the best fit for you.
Similarly, if you have children and want them to go to a great school, you’ll want to be sure that you are moving into a good school district. Simply by touring the neighborhood and chatting with your new neighbors, you can find out a lot of this information very easily.
Is It Time to Talk to a Mortgage Professional?
If you’re ready to start the homebuying process, consider consulting with a mortgage professional. These individuals, such as the ones at Rex Homes, can help you every step of the way. Call today!