It's an honor to have you here!
I want to share with you what I consider vital steps for Buyers before and after looking for a home. Sometimes I hear looking for a home is stressful and frustrating. But it can become really pleasant if you do the right things at the right time.
You don't want to begin putting a pot on the stove for a chicken, turn the stove on, and then go to the grocery store to buy the chicken!! Imagine that pressure and what could happen!! Craziness!
Same thing happens with some Buyers. Jump over some important steps that will avoid 'craziness' later.
So, after having difficult and easy situations with Buyers and from my colleagues experiences, these are my advises if you're thinking of buying:
Here we go!!
1. Plan to pay as much debt as possible so your income doesn't seem to be spent only on expenses. Net income is vital to decide how much of loan you'll get and what type of loan.
2. Make sure your credit is in good standing (#1 tip has part on this). For a conventional loan, you'd need approximately a credit above 660. For a FHA loan is a little bit lower. But try to be close to 660.
I highly recommend to download Credit Karma app to monitor your credit for free!
3. Besides the down payment, save ahead around 5% of the home price, for closing costs.
If you get an FHA loan, you'll need 3.5% down payment. For a conventional loan, it can go from 5 to 25%, depending on many factors. This type of loan is easier to work with, especially if looking for a condo or townhouse.
4. Get pre-approved with a mortgage broker or bank!! This step is IGNORED by many Buyers and it's the most IMPORTANT one. Why?? Because with the pre-approval letter in hand you know exactly how much is your budget, what type of loan you have, and you're ready for any offer when you find your dream house!
5. Find a good Realtor! This is best by asking friends/family to refer someone they know and trust! For him/her to help you as much as possible, you need to have completed the steps 1 to 4.
You are welcome to read my testimonials if you want to know me better! :-)
6. Specify to your Agent, as define as possible the area you want and the description of the house like:
how many beds/baths; townhouse, condo, single family; 1 or 2 stories; garage or not, private or community pool, among others. A good Realtor will ask you the right questions.
7. Make an offer!! Yay!! You're a step closer!!! A well prepared offer will increase the chances of getting that 'yes' from the Seller. Make sure everything is completed for your Realtor!
8. Have patience and be diligent. After getting the offer accepted, a lot of things will begin and can take some time, around a month. Your loan application, the association application (if not single family house), the title search and lien search, ...... At this point, trust and consult with your Agent of every step!
My biggest and best advice above all is to be a team with your Realtor! Communicate on what you like and dislike. You both want to find that house and both need from each other.
Hope this was helpful!! You can make any comments below. I'd like to hear your experiences or questions!! :-)