Congratulations! Chances are if you are
reading this post you are thinking about buying a new home. Buying a house is a
major milestone in your life, as well as a big investment. So, before you start
your search for the perfect home, Coastal Realty
Services recommends completing the following steps first.
1.
Make a checklist.
Before you begin house hunting, you should make a checklist of all the factors
and features you need and prefer from your new home. Start with things
you absolutely must have, such as a certain room size, location, and number of
bedrooms and bathrooms. Then list things you'd like to have, but could possibly
do without, such as a wrap-around porch or dual oven. When making your
checklist you should also think about things you don’t want from a home. Knowing what you want and don't want can make
the search easier on you and your realtor.
2.
Strengthen your credit score. Having a strong credit score improves your chances of
getting approved for a mortgage loan. Generally speaking, you'll need a minimum
credit score of 620 in order to get approved. To find out what your credit
score is, request a free copy of your credit report from all three major
reporting agencies— Experian, Equifax and TransUnion— at least six month before
beginning your home search. This will give you the most accurate depiction of
what your credit score is. If your score is on the lower end, click
here for ways you can improve it. Boosting your credit score is also important
because the higher your credit score is, the lower your monthly payments will
be.
3.
Set a realistic budget. Create
a budget of what you can afford to spend on the house and do not exceed it.
When setting your budget, be sure to account for your monthly debts, as well as
save room for building up your savings. You'll need to set aside 10% of the
buying price for a deposit and an additional 5% for closing costs.
4.
Get pre-approved for a loan. It's a smart idea to get pre-approved for a mortgage loan
before beginning your home search. This will help prevent you from home falling
in love with a home you can't get approved for, as well as put you at an
advantage should there be several interested buyers. The seller will be more
inclined to sell to a buyer who has been pre-approved versus a person who has
not started the process.
These are some key steps
that should be completed for beginning a home search. What else should you do
before you start house hunting?
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