Buying your first home is an extremely exciting time. But, like doing anything else for the first time, it can feel a bit overwhelming. Where do you start?
A recent video from realtor.com outlined some of the first steps you’ll want to take as you start your journey to homeownership, including:
- Get ready for the financing process. Unless you have enough cash, you’ll need financing to buy a home. Your ability to get approved for a loan will determine if you can buy a home—and, if so, how much home you can afford. If you’re considering purchasing real estate, get ahead of the process and take steps to get ready for your loan application—for example, by organizing any required financial documentation or checking your credit report for any mistakes. If you find a mistake, take steps to correct it.
- Qualify for a home loan. If you’re actively looking for a home, you’ll want to go through the pre-approval process. To get pre-approved, the lender will take a deep dive into your finances, including your credit score and history, income, and the amount of money you have in savings. Afterwards, they’ll determine how much they’re willing to lend you—which is critical information you’ll need in order to determine which houses are in your price range and worth seeing.
- Consider a loan officer. If you need help with the financing process, you might consider working with a loan officer. They can help break down a variety of financing-related issues—including which loan programs you qualify for, your maximum purchase price, what you can expect your monthly payment to be, and how much cash you’ll need to have set aside to cover your down payment and closing costs.
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