Preparing to Purchase
This is the proper way to get started when you have made a decision to purchase your first home. Do not let this overwhelm you, it is the best way to have a successful home experience with the least amount of stress and back and forth.
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1. Find a good Realtor®
Having a good Realtor® means creating a relationship with a professional who has been trained to see you through the entire home buying process. A good realtor has access to other professionals, such as lenders, inspectors, insurance agents, and homeowners insurance agents to name a few, which you will need through the home buying process. A good Realtor® also has extensive knowledge in the area and can help you make better informed decisions.
2. Know your score
The very first thing to know is your credit score. Utilizing Credit Karma® and Experian will give you free access to your credit score and allow you to see what is on all three of your credit bureau reports.
3. Have a lender pull your credit
Although you can see the scores provided to you by each credit bureau, through Credit Karma® and Experian, a mortgage lender will view your credit differently. Therefore, it is wise, in the beginning of the process, to have a lender pull your credit to see where you stand. This will allow for the lender to provide you with guidance towards an approval.
4. Start saving
Although there are down payment assistance programs available, they usually come with a cost. It is best to be sure to begin saving all that you can for your down payment and closing costs.
5. No purchases or new debts
If you are preparing to purchase a home, it is best to curb unnecessary spending and any large purchases, such as a car. Knowing your debt to income ratio will give you a road map to how much house you can purchase based off of your income. The more debt you add, the less house you can afford. This is also a great discussion you can have with the lender you choose.
6. Follow the plan
Once you have met with a lender and devise a plan to move forward, follow the plan. The plan, much like a GPS, is constructed to help you succeed and receive a loan approval.
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