6 Things You Need to Do Before Buying a Home

6 Things You Need to Do Before Buying a Home

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Are you in the market for a new home? If so, there’s more to do to prepare to buy a house than simply shopping around.  Make sure you are prepared financially, emotionally, and mentally for the process of buying a home.  If you are getting ready to buy a house, do these six things first– and then go find the perfect house.

Check out your credit score

Before putting in an offer on a house, you’ll want to see if you can qualify for a loan.  This starts by checking in on your credit score.  How’s your score doing?  Is it high enough to get a good interest rate?  Is it lower than you’d like due to missed payments?  If your score is low, it might be smart to take some time to improve your score.  You can do this by making all your payments on time, paying off debt and getting rid of credit card payments.

Save for a down payment

Another smart thing to do before buying a home is saving for a down payment.  On a traditional mortgage loan, you will have to put down 20% of the price of the home.  There are other types of loans that require you put down less but you’ll want to decide which option is right for you.  There’s no such thing as saving too much money because any cash that doesn’t go towards your down payment will be needed to cover closing costs.

Find out what you can afford

Before you choose a home, find out just how much you can afford to pay for a house. You should decide how much you can afford each month for a mortgage payment and then use a mortgage calculator to find out what that equates to in home prices.  It’s wise to set a budget for yourself and to stay at or below budget when shopping for homes. Being ‘house poor,’ is never a good thing!

Get pre-approved

Pre-approval is the next important step in preparing to find a home. Most sellers or real estate agents won’t take your offers too seriously until you’ve gone through the pre-approval process. When you get pre-approved, you’ll meet with your lender and fill out a mortgage application and you will receive a conditional commitment in writing for a certain loan amount.  You will then be able to look for homes at or below that loan amount price.

Decide what you want

Another great thing to do before looking at houses is to decide what you like and what you want in a house.  You could make a list of your must-have items and another list of wants.  When looking at homes, keep your must-have list in mind and don’t let it be compromised or swayed by houses containing only your ‘want’ items.  Look at photos of homes to decide the style you like and the kinds of things you want your house to have.

Look for the right house

Finally, search for the right house for you and your family.  Make sure the home falls into your budget parameters, checks off all the items on your must-have list and is a place that makes you happy.  Whether you look at five houses or 20 before finding the right one doesn’t matter.  When you see the house that’s meant for you, you’ll know.

If you’re in the market for a new home, you need an expert like me!  Find a new house the easy way by working with Metropolitan Homes Group. You’ll be glad you did!

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