Finances

Buying a house requires credit and establishing credit is very important when you are looking to purchase a large investment like a house. Your credit report reflects how you manage your finances. Study your credit report and your financial history so you are familiar with it before applying for a mortgage loan. These reports will be needed for the mortgage approval process in finding the best interest rate and other terms of the loan.

Get Information on the Mortgage Home Industry

Researching to find the right home loan and lender is extremely important to your home buying success. Choose a lender that is best for your needs but be sure to understand the loan process as much as you can before talking to a lender so you don’t feel completely lost.

Get a Pre-Approved for a Home Mortgage

Once you talk with a lender, you should be given an estimate of how much you can afford for a first time home buyer. Being preapproved can help you in several ways. If a home seller gets two offers, one being yours with a preapproved letter from your bank saying you have been approved for the amount offered, and then there is the other person with no preapproval letter, your chances of getting the house are much better.

Determine What You Need for a Home

Buying a home isn’t as challenging as most people think. If you familiarize yourself with the real estate market and narrow down your needs before buying, the process will run a lot smoother. Don’t over buy your first home and take the risk of losing it due to some unforeseen event. Be sure that you understand what the agent’s duties are. Some real estate agents represent both the buyer and seller, depending on your location. You may want to have a third party if your agent represents both buyer and seller.

Start Searching for your New Home

Check multiple listing sheets and reviews. Use real estate magazines for your area as well as online sites, and newspapers. Drive around interested neighborhoods that have houses for sale. Use the entire home buying search tools in your area. Consider the location in respect to schools, your work, and the commute.

Make an Offer

There are no one specific set of rules or instructions that cover all the differences in real estate laws and customs that exist throughout the United States, so when putting in an offer on a house, it will depend on your location.

House Inspections and Other Tests

Some states allow home inspections before the final contract is signed where as in other states inspections take place after the contract is signed. No matter when you have to do them, it’s very important to decide which inspections and tests you want done. Discuss with your real estate agent or an advisor to find out what inspection should be performed to protect your investment. Make the final sale contingent on satisfactory inspections results.

Closing - Settlement