Home buying is one of the most significant decisions you will ever make in life, so making an informed decision about which property best meets your needs can be challenging but ultimately worthwhile. Understanding why you want to purchase will help guide your search process and help find you your dream property.
As your first step, get pre-approved for a mortgage to establish a budget and avoid searching homes that exceed this price range.
Homebuyers need to know their budget before beginning the search for their perfect home. While online calculators and pre-qualification may provide you with an initial idea, obtaining a mortgage pre-approval from a lender provides more accurate answers. A pre-approval gives a loan application greenlight based on information such as income, debts and assets supplied; it doesn’t guarantee approval and may change as you continue your search and provide more details.
An application for pre-approval of a mortgage demonstrates your seriousness as a buyer, with lenders needing to view your financial history and documentation such as pay stubs, bank statements, tax returns and credit cards – this process typically takes longer than pre-qualification and could take up to one week or longer than prequalification.
When you’re ready to purchase a home, give your realtor a copy of your pre-approval letter as proof. This demonstrates to sellers you are an eligible and qualified buyer with the ability to quickly make offers; furthermore, this can help negotiate better deals as sellers will recognize you are committed.
If your pre-approval amount falls short of what was set as your budget, speak with your lender. They can explain why, and help you adjust your spending expectations accordingly.
Be sure to choose an ethical lender when applying for a mortgage loan. There are numerous lenders specializing in mortgages who provide competitive rates. Before applying, research the various types of loans available and find one that will best meet your needs. Next, compare fees and interest rates between lenders before selecting one with better terms – this could save money over the life of your loan!
Finding a Lender
Selecting the ideal lender when purchasing or refinancing a home can be daunting task, and Zillow’s Mortgage Calculator can assist in this decision by comparing mortgage rates and fees, and showing reviews by previous homeowners about specific lenders.
Katy has been involved with mortgage lending since 2011. She holds a bachelor’s degree from Southeastern Louisiana University and is licensed mortgage loan originator. Katy strives to ensure each customer enjoys their lending transaction as much as possible, and is always happy to answer any queries that may arise during their transaction process.
Home inspection is an integral component of the buying process. Home inspectors use non-invasive visual examination techniques to inspect foundation, crawl space, basement roof electrical plumbing HVAC systems. Interior and exterior components will also be examined. Inspection reports serve both buyers and sellers to help assess value as well as inform them about any issues which need addressing before closing; pre-inspections make the buying experience less stressful for all involved parties involved.
Home buyers typically request that the home they’re considering be inspected before closing. While this can lead to negotiations and delays, some buyers in an increasingly competitive seller’s market are willing to forgo this inspection contingency in order to increase their chances of buying the house they desire more quickly – in this scenario it may be worthwhile for homeowners considering listing their property to conduct a pre-inspection prior to listing their property for sale.
Pre-inspections provide valuable information about a home, helping the seller determine what repairs may need to be completed before listing their home for sale. They also can give sellers an idea of the price to set for their property. Should any major problems emerge during buyer inspections, sellers can quickly address them to avoid potential sales being lost.
Be mindful that regardless of whether or not you choose a pre-inspection, by law you must disclose any issues with your home to potential buyers – this may include lead paint, flooding and structural damage – if this information becomes available prior to selling your home it can help factor these factors into pricing or be leveraged as negotiation points.