Do you understand the Steps to buying a home? It’s the biggest purchase most will ever make. Before you start, make sure you understand the home buying process. How to Buy a Home? If you are a first-time buyer or haven’t bought a home in a while, understanding today's market and buying guidelines are critical.
1. Gather the Information You Need to Qualify for a Mortgage before buying a home, you will need to secure financing. When preparing to buy a home, be ready to provide a mortgage lender with the following information.
Income and employment
Down payment, your lender will ask how much money you have available for a down payment for the house you would like to buy. A down payment of 20% or more of the home purchase price generally provides you with immediate equity in a new home. Although many 1st time homebuyers take advantage of the many programs available to them.
2. Find a Lender to get Pre-approved for a Mortgage Loan While pre approval is not a mortgage commitment or guarantee; it will provide guidance on what you can afford to spend on your home. Having a pre approval letter to show to a seller demonstrates that you are a serious buyer. When you are ready to buy, it will shorten the time it takes your lender to complete the mortgage application process.
3. Select Your Home with your mortgage pre approval, you are ready to begin your search. A licensed real estate professional can help you find a home that meets your needs and your budget. In addition, a licensed agent has access to the Multiple Listings Service (MLS) that generally offers the most comprehensive list of homes for sale, making the house buying process easier.