The purchase of a home is a big deal for most of us. Let’s face it, this could be the largest purchase you’ll ever make in your lifetime…or at least one of them. There are so many things involved in the home buying process, which is why you have to be well prepared. The more prepared you are, the better your experience will be.
Working hard as an Orlando Realtor for the past 13 years, I can tell you first hand that when you’re well prepared to buy your first home the process will be much smoother and you can enter the home buying market with confidence instead of doubt.
Here are 6 excellent tips to help you make your home buying experience a good one.
1-Get your Financial Ducks In A Row
Priority #1 should be to get your finances in order. This means you need to start talking to lenders and shop for mortgages… or if you prefer, find a good mortgage broker to do the shopping for you. Either way, you’ll have to provide them with a lot of information in regards to income, expenses, etc. Basically, they have to prove that lending to you is a smart business move on their part…
The amount you pay in interest on your mortgage payment is largely determined by your credit score. It’s important to boost your score up as much as possible as this can translate to tens of thousands over the lifetime of your mortgage.
Start by requesting a credit report from the 3 big credit report companies so you know exactly what you’re working with. The Fair Credit Reporting Act states that these 3 companies provide you with a free credit report once a year upon your request. A good mortgage broker will be able to do all of this for you if you prefer. Once you get your credit report, look at it carefully for any errors. If your credit score is low, it might be in your best interest to work on improving it to get a better interest rate.
2-Get Pre-Approved
You wouldn’t go grocery shopping without knowing how much you can spend, would you? The best way to find out how much you can afford to spend on a house is by getting pre-approved by a lender. It’s extremely important to shop around for your mortgage to see which one offers you the best terms. The amount you get approved for and the interest rate is largely based on your credit score, income, expenses, etc…
Important: Pre-approval doesn’t mean full approval… If your employment status changes or your credit worsens between the time you got pre-approved and the time you actually try to buy a house, you may be in for a rude awakening. The best thing to do is start home shopping just as soon as you get the pre-approval letter in your hands.
Some people think they can save themselves thousands by not using a realtor to buy their home. But if you want access to every home on the MLS as well as having someone in your corner looking out for you, then you should really consider hiring a realtor. The trick here is to hire an excellent realtor. It will definitely take some effort on your part but will be well worth it. It’s always best to talk to at least 2 or 3 agents on the first page of your Google results to see which one you feel most comfortable with.
4-Time your Move
Unless you’re staying at your Mom’s house, you’re probably renting a place. In order to avoid having to pay an additional 6 months on your lease, try timing the big move so that you won’t take too much of a hit. Talk to your realtor about your situation. They will be able to tell you how long it will take to get the sale finalized so you can get moved in.
5-Find Neighborhoods you like
Your realtor can prove invaluable in this instance. A good realtor will be well informed on all the surrounding neighborhoods in the area where you want to buy. Have a long sit down with your realtor so they know what all your needs want and dreams are for your new home…Once they have this information, they can find an area that meets your needs and fits within your budget.
By following these 5 tips, you’ll be on your way to a successful home buying adventure.
