Once you’ve made the decision, the hunt to purchase your next home is always an adventure. However, if you’ve been through the process before you know what a long and intricate journey you have ahead; there are so many vital things you have to consider when you’re buying a home.
Once you commit to hunting for a new home, it’s overwhelming enough, that’s not the time to discover hidden yet predictable roadblocks. The following tips will help you consider the necessities before you get too heavily involved. Do the simple stuff first, and you’ll have an easier time later. Additionally, there’ll be less chance that some unexpected thing could block the path to your dreams.
Calculate Your Family Budget
Knowing your family’s income and outgoing payments is fundamental to determining what your home purchase options are going to be. If you’ve bought a home before, you know that it’s all about the numbers.
Gather all of your personal documents together so that you have all of the information at your fingertips. You’ll need such records as existing home loan docs, insurance, and bank statements. If you’re a member of the Armed Forces or have records of an honorable discharge, your service records may entitle you to added benefits that ease your new home purchase.
Pull Your Credit Reports
You have a legal right to view your credit reports from all three of the big credit reporting agencies for free once each year. The site AnnualCreditReport.com is the official site where American consumers can access all three with no fee.
Review your reports to make sure they are accurate. If you find any errors, disputing them now will save you time and trouble when you can least handle it later. Credit reporting mistakes do happen, and you might also discover that your financial activities were consistently reported to all three agencies.
Start Looking At Your Lender Options
If it’s been a while since your last foray into mortgage borrowing, it’s time to look at interest rates, deposit requirements, and useful features such as government-backed loans. You may find that you’re eligible for a package that makes purchasing your home much more affordable than you’d expect.
If you are moving to Georgia from out of state, you should take some time to familiarize with the state’s terms and conditions for lending, as they may be different to your previous state. For example, in Georgia, you can borrow by either mortgage or trust deed, which gives you more financing options than other states that allow only one or the other.
Prequalify with A Lender To Become A Homebuyer
The real estate profession is exceptionally formal. Sellers and their agents are much more likely to take you seriously as a homebuyer if you can prove that you can make the deal happen. So, as your first formal act as a potential homebuyer, approach your bank or a local lender and work with them to qualify for a home loan.
Once you successfully prequalify, your lender will write a letter that outlines in principle how much you can borrow and on what terms. This letter puts you in a much better position to negotiate, and it certifies to builders, sellers, and brokers that you are serious about buying your next home.
Get Ready To Sell Your Old Home
You may already be a homeowner determined to move up the property ladder. Alternatively, if your family is growing, you may have no choice but to find a bigger house. Start considering what you must do to put your old home in top order to sell it.
Preparation pays extra dividends here because any delays in selling could ripple through to the purchase of your new home. For example, if you hold a mortgage balance still, lenders often expect you to repay the principal before financing a new home, and if you intend to keep your first home as an investment, be sure to clear it with the bank first.
Purchasing your new home is an exciting time; it’s also stressful and filled with complexities. If you can eliminate some of the causes of risk early on, it may prevent distress and disappointment later in the process.
Once you’ve gathered your documents, you’re familiar with your financing options and prequalified with a lender; you’ll be in a position of strength to hunt for the home of your dreams. Follow these tips, and you’ll set the stage for the best possible experience while you make the transition into the next exciting phase of your family’s life.