Home Buying Process

Do you want to buy a home but don't know where to start?

STARE HERE

CHECK YOUR CREDIT SCORE

You can obtain your free annual credit report at www.annualcreditreport.com

You'll need a minimum of 580 to qualify for a loan. It is recommended that you contact a lending professional to assist in assessing your qualifications.

PAY DOWN DEBTS

When you can, try to pay off other debts. This can both help your credit score and help you save money in the future.

CALCULATE YOUR BUDGET

To calculate your budget you must first calculate your debt-to-income. To do this simply take your total debt figure and divide it by your income. For instance, if your debt costs $2,000 per month and your monthly income equals $6,000, your DTI is $2,000 ÷ $6,000, or 33 percent. Once you know your DTI, calculate your monthly expenses. This might include utilities, groceries, gas, and entertainment. The rule of thumb is that a mortgage should be no more than 30% of your income.

To get the most accurate housing budget, consult with a lending professional.

SAVE FOR A DOWN PAYMENT

If you're not already paying your maximum monthly budget amount in rent, save the excess for your down payment. You can also consider cutting out unnecessary expenses for a short period. This will allow you to save as well as pay down any debts that may hinder your qualifications. In addition to your down payment, you can expect to pay anywhere from 2-4% in closing cost as well as preliminary escrow deposits.

FORM A PLAN

Visualize what you want in a home, and then determine what's most important to you. Do your research! Do you know where you want to live? How far will you need to commute to work? Where are the best school districts and safest areas?

GET PRE-APPROVED

The very first step when you feel you're ready to purchase a home is to get pre-approved. If you have not already begun working with a lending professional, Shop around several lenders to ensure you get the best quote. Not sure where to start? visit the RESOURCES page to browse our preferred lenders. Obtaining pre-approval is important because, without it, you're essentially guessing what you may qualify for. Armed with a pre-approval, you can steer your home search in the right direction and avoid potential heartbreak.

CHOOSE A REAL ESTATE PROFESSIONAL

When searching for a real estate professional, you want someone who is responsive, reliable and trustworthy. You also want to find someone you down right get along with. Get recommendations from friends and family.

SEARCH FOR HOMES

Check out houses within your budget. See what you like and compare to your list of priorities. While your real estate professional will diligently search properties that fit your criteria, you are ultimately the only one who knows exactly what you desire. Working as a team will enhance your chances of finding the perfect home.

CHOOSE AND MAKE AN OFFER

For some, this can be the most difficult part of the process. In today's market, homes can go very quickly making it pertinent to be prepared. Your real estate professional will guide you and negotiate the best pricing and terms.

GET A HOME INSPECTION

Select a local inspecting professional to perform an inspection of your home. They will help determine if minor or potentially major repairs are imminent. Armed with an inspection report, you can then negotiate repairs and/or a price reduction.

INSURANCE & UTILITIES

You'll need proof of insurance before you get the clear to close. Shop around and request several quotes. Choose the one that best fits your budget and needs. Be sure to give your chosen insurance information to your lender. About a week before closing, request utilities be transferred on the closing date. This will help avoid delays in service.

FINAL WALK-THROUGH

Before closing, perform a final walk-through. Ensure that the seller has completed any negotiated repairs and no new conditions have arisen.

CLOSING

Be sure to bring a valid ID and your funds to closing.

Are you ready to start your home buying process? Contact me today!

Macy Williams

REALTOR

281-543-3032

macysellshomes@gmail.com