Buying a house can be stressful. There is a lot to think about when you’re getting involved in real estate transaction, and it can be hard to know where to start., The biggest challenge a home buyer encounters is to edge out your competition. There are so many buyers out there, and chances are if you’ve found your ideal home, it’s the ideal home of many other potential buyers as well. Here are a few tips to help you buy the house you want.
1) Clean up your credit
It’s best to always monitor your credit report, because the history of your credit serves as the foundation of your finances. It affects everything from our insurance rates to the amount you pay for a loan. Needless to say, it affects your large purchases as well, such as buying a home. The home buying process is likely to go more smoothly if your credit reports are accurate.
2) Establish a price range
When you start out, you want to make sure you know what your price range is. If you go above your price range, your finances could suffer later. A good way to figure out your ideal price range is by using Redfin’s home-affordability calculator. This tool takes a number of things into consideration, including your income, your down payment, and the totally recurring monthly payments such as student loans, car payment, and credit card minimum payments.
3) Get pre approved
To get pre approved, one typically needs to consult with a mortgage lender. This lender should look over your credit reports and decide how much it can lend you. This is a bit better than prequalification, in which a lender simply gives you an idea of what you’ll be able to afford. One thing to watch out for is the differences in terminology that various lenders use. Make sure you ask for clarification.
4) Shop for mortgages
You’ll want to look into a variety of lenders instead just going with the first one you find. It is easy to find a variety of lenders with the help of sites such as Bankrate and HSH. You can also shop for a number of local credit unions by visiting culookup.com. Comparing terms can be fairly easy with the help of new standard loan estimates that are mandated by the Consumer Financial Protection Bureau.
5) Sweeten the deal
When you’re buying a home and you’re in a competitive bidding situation, cash offers and large down payments grab people’s attention. But there are other considerations that can sway sellers as well, such as flexibility with the closing date and shorter inspection periods.
Buying a home can be tricky and stressful. But with these helpful tips you should be able to get a leg up on the competition and purchase your dream home in no time.