The Steps You Should Take While Buying a House
Buying a new home can be one of the biggest decisions of your life; fortunately, your ProFed team is here to help. Until you receive the keys, move in, and get comfortable, the home-buying process can become somewhat overwhelming—take comfort in our services and guidance.
Numerous types of mortgage loan options exist, such as conventional loans, first-time home buyer programs, and government-backed USDA and FHA home loans. It’s important to apply for a loan that fits your circumstances. Here are some basics on buying a house with a mortgage and a brief guide to help things go smoothly.
Most realtors will require a mortgage preapproval letter before they begin showing you homes. To prepare for a meeting with a mortgage lender, collect your recent tax returns, bank statements, and copies of your recent pay stubs. Lenders will use this debt-to-income ratio and your credit history to help you determine a pre-qualification amount for your real estate agent.
Buying property requires saving for a down payment and closing costs; helpful online resources can help you learn how much to save for a house. When finalizing the loan, buyers should consider all the closing costs, including fees, property taxes, and homeowners insurance, that may need to be folded into the escrow and the monthly payment.
Once you get preapproved for a mortgage, you can see which loan works best for you. If a mortgage meets your personal needs but requires a higher credit score, you can improve your rating before seeking final approval. Taking steps such as paying down credit card balances can quickly increase your credit score.
A mortgage calculator will realistically display how much of a home loan you can afford, simplifying your search. When you are comfortable with how much house fits in your budget, you can start house-hunting in those areas and neighborhoods where you'd like to live that are within your price range. If you have kids or plan to have kids in the future, begin by searching for available listings in desirable school zones that fall within your loan's threshold.
Interest rates on mortgage loans fluctuate rapidly. You could wake up each day asking, "What are today’s mortgage rates?" Because lender approval criteria and mortgage rates may change suddenly, be prepared to act swiftly once you receive a preapproval. A carefully planned home purchase can take between one and three months.
The internet has improved the homebuying process. Online listings, social media, and interactive maps provide what you'll need to locate potential properties. Your computer or mobile device lets you take virtual tours of the homes you’re interested in. Social media paints a picture of the type of lifestyle and events in a particular area.
Finding the right real estate agent can help you move toward your home closing date faster. When you find the right home that reflects what you’re looking for and make an offer, don't be too disappointed if your realtor tells you of other interested buyers, especially in the current housing market. Every home must be appraised and reviewed by a home inspector, an essential part of a buyer’s due diligence. After your chosen property passes a home inspection, it’s time to close on your house.
Finding a qualified mortgage option that meets all your requirements may take time. If you have issues that could delay your homeownership journey, contact one of our experienced mortgage lenders to discover ways to overcome the obstacles and move toward approval.