How to buy a home, and where to start is a question we get asked a lot. This will most likely be the biggest purchase of your life. Please keep in mind everyone’s financial circumstances are different. So this is just a broad overview of how to get started and what to expect. Purchasing a home is a great investment. The better prepared you are, the better your opportunities will be for your home purchase.
How to Buy a Home
Review your financial situation: Take a good look at your income, finances, credit score, and outstanding debt. Many prospective buyers have great credit and make good money but lenders will look at the big picture. The big picture means how much income is there versus the monthly debt as well. Lenders refer to this comparison as the debt to income ratio. All of the monthly expenditures will all filter into this ratio. Generally there will be monthly car payments, credit card payments, and various other bills. Once you are comfortable collecting this information and checking out to see if you can qualify for a loan, you’re ready for the next step.
Getting qualified for a Loan
A mortgage lender will be able to tell you exactly where you stand and what you need to do if anything to get qualified. How to buy a home starts here, there are always many loan programs available if you speak with a mortgage/loan officer. There are many 3%, 5%, 10%, 15% and 20 percent or more loan programs available. There is also down payments assistance programs available so don’t be afraid to ask.
If you’re a veteran of the armed forces, you may also qualify for a VA loan, which is a no money down loan. Being a Realtor for Veterans and our Military is something we take great pride in. I myself am a 20 year Veteran and have used the VA loan numerous times and can help get you all of the information you made need.
With all of these various loan programs available, it is crucial that you get qualified for a loan before you start looking for a home. The number one reason why you want to work on getting qualified prior to looking for a home is the home has to qualify for your loan as well. What? That’s correct, loans have qualifications as well and many homes will not qualify for various types of loans or in some cases none at all. This is why you need to know what type of loan you will be using so you have no disappointments.
The Home Search
Now that you’ve figured out how to buy a home, this ultimately is the step every buyer wants to be in. Once qualified you get to do the fun stuff. Everyone has different wants and needs when they purchase a home. The best thing to do is prioritize what’s important to you and your family. Is it location, price, square feet, number of bedrooms, or a pool? We can get the search all set up for you once we get all of this information. Then you can see what homes in the area’s and price range you request. From here on out it’s a matter of showing you homes until you find the home of your dreams! Next up will be the escrow process.