Any major purchase requires research, careful analysis, consideration, and thought. Home buying isn't any different! Determining the right location, the number of bedrooms or bathrooms needed, and outdoor space is the easier things. However, there are many other factors to think about in your home search. From your initial search to the moment you get the keys to your new home, I will be there, guiding you through the process. I can even help connect you with mortgage professionals to get the best rates. Here are some steps to take to purchase your next home.
Buying a home is most often the biggest purchase a person will make in their lifetime. Buyers should know how the process works prior to looking at homes. Once your buyer’s agent knows what you can afford, they will let you know what price range to stay in. They will also help to explain how showings work, the details of writing offers and the importance of an inspection.
When you hire a buyer’s agent, you get the expertise and experience of an agent who is professionally trained in finding you the perfect home. And they will have your best interests in mind when submitting an offer, not the seller’s. They are there for you every step of the way.
The best way to ensure your home buying process is a confident one is to find a real estate pro who will put your needs first and guide you through every aspect of the transaction with the heart of a teacher.
Figure out how much you can safely spend on a house before you begin your search. A great rule of thumb is to use the 28/36 percent rule. This means a household should spend a maximum of 28% of its monthly (gross) income on total housing expenses and no more than 36% on total debt, including housing and other debt such as car loans and credit cards. Lenders use this rule to determine whether to extend credit to its borrowers.
A mortgage pre-approval is a lender's offer to loan you a certain amount under specific terms. Having a pre-approval letter shows home sellers and real estate agents that you're a serious buyer and can give you an edge over home shoppers who haven’t taken this step yet. Apply for pre-approval when you're ready to start home shopping. A lender will pull your credit and review documents to verify your income, assets, and debt. Applying for pre-approval from more than one lender to shop rates won't hurt your credit score if you apply for them within a limited time frame, such as 30 days.
Your credit score will determine whether you qualify for a mortgage and affect the interest rate lenders will offer. Most lenders require a minimum credit score of 620.
Get free copies of your credit reports from each of the three credit bureaus - Experian, Equifax, and TransUnion - and dispute any errors that could hurt your score.
Pay all your bills on time and keep credit card balances as low as possible. Keep current credit cards open. Closing a card will increase the portion of available credit you use, which can lower your score. Track your credit score. Frequently monitor your credit score during the home-buying process to it is accurate at all times.
Home inspections are required if you plan on financing your home with an FHA or VA loan. For other mortgage programs, inspections are not required. However, home inspections are highly recommended because they can reveal defects in the home that are not easily detected. Home inspections bring peace of mind to one of the biggest investments of a lifetime.
Your negotiating power will largely depend on the local market. It's tougher to drive a hard bargain when there are more buyers than homes for sale. Work with your real estate agent to understand the local market and strategize accordingly. We can help you understand your closing costs including the cost of title insurance in Texas and which items to negotiate within the list to help minimize your transaction-related expenses.
There are multiple types of mortgage loans, each with different criteria. The type of loan you choose will determine the amount of your down payment.
As your buyer's agent, I can help streamline the process of buying a home and make it easier for you. I’ve aligned myself with the top professionals in the industry, and once an offer has been accepted, I will personally help facilitate the process to close on the home. By working closely with mortgage brokers, title and escrow companies who provide fast eClosing services, mobile notaries to help with remote online notarization, home inspectors, and home warranty companies I will provide you with the best service possible!