Shopping for a new home can be quite exciting, but at the same time the process of buying a house also can be quite stressful. If a home purchase is in your near future, consider completing a little pre-home buying work to make the whole process a bit easier. Here are a few tips to consider.
Many financial companies advertise their lending services and talk about loan pre-approval or pre-qualifying for a loan. Pre-approval and pre-qualifying are not one and the same. Many lenders offer quick pre-qualifying services via email or phone calls. Pre-qualifying gives you a general idea of what you might be able to afford, but it is never a guarantee that you actually can obtain a specific mortgage loan amount. Still, it usually is a quick and free process that can help you think about your potential home buying budget. When you get truly serious, you need to get a loan pre-approval.
Of course, pre-approval also is a more involved and longer process. You will need to make an appointment with a lender and bring along financial statements showing your all of your income, as well as all of your expenses. The lender also will run a credit report and your credit score definitely has an impact on the amount for which your will be pre-approved. When you have loan pre-approval, you know exactly how much you can spend on a home and sellers are far more likely to select a buyer that is pre-approved because it means the sale is much more likely to go through.
In theory, the whole process of pre-approval begins many months before you meet with a lender. In the six months leading up to buying a home, this is the time to strengthen your credit score and save up money for your down payment, your closing costs and other fees associated with buying a home. Obviously for many buyers, your down payment will come out of the sale of your current home. However, the months prior to buying a home are scrutinized by lenders so don't open new credit card account or purchase any big ticket items prior to buying. This is a time to look as steady and responsible as possible.
Before you meet with your realtor you also need to know what you need and want out of the new home. While it helps to be realistic and keep an open mind, your realtor needs to know essential information such as the area in which you want to live, the school district you must be in, the size of home you need and the style of home you prefer. Be as specific as possible and list a few of the biggest must-have items at the top of your list. If you have some deal breakers such as a home too far away from work or on a busy street, be sure to put those down as well.
Choosing a great realtor is always the best way to ensure that you find the best home and that the buying process runs smoothly. If you are searching for Texas Hill Country real estate, consider calling the team at Nixon Real Estate. They can find Fredericksburg real estate, Kerrville real estate, San Antonio real estate and homes for sale throughout Gillespie County and the surrounding area.
Many financial companies advertise their lending services and talk about loan pre-approval or pre-qualifying for a loan. Pre-approval and pre-qualifying are not one and the same. Many lenders offer quick pre-qualifying services via email or phone calls. Pre-qualifying gives you a general idea of what you might be able to afford, but it is never a guarantee that you actually can obtain a specific mortgage loan amount. Still, it usually is a quick and free process that can help you think about your potential home buying budget. When you get truly serious, you need to get a loan pre-approval.
Of course, pre-approval also is a more involved and longer process. You will need to make an appointment with a lender and bring along financial statements showing your all of your income, as well as all of your expenses. The lender also will run a credit report and your credit score definitely has an impact on the amount for which your will be pre-approved. When you have loan pre-approval, you know exactly how much you can spend on a home and sellers are far more likely to select a buyer that is pre-approved because it means the sale is much more likely to go through.
In theory, the whole process of pre-approval begins many months before you meet with a lender. In the six months leading up to buying a home, this is the time to strengthen your credit score and save up money for your down payment, your closing costs and other fees associated with buying a home. Obviously for many buyers, your down payment will come out of the sale of your current home. However, the months prior to buying a home are scrutinized by lenders so don't open new credit card account or purchase any big ticket items prior to buying. This is a time to look as steady and responsible as possible.
Before you meet with your realtor you also need to know what you need and want out of the new home. While it helps to be realistic and keep an open mind, your realtor needs to know essential information such as the area in which you want to live, the school district you must be in, the size of home you need and the style of home you prefer. Be as specific as possible and list a few of the biggest must-have items at the top of your list. If you have some deal breakers such as a home too far away from work or on a busy street, be sure to put those down as well.
Choosing a great realtor is always the best way to ensure that you find the best home and that the buying process runs smoothly. If you are searching for Texas Hill Country real estate, consider calling the team at Nixon Real Estate. They can find Fredericksburg real estate, Kerrville real estate, San Antonio real estate and homes for sale throughout Gillespie County and the surrounding area.
About the Author:
Pammy McGrath enjoys reading real estate blogs. If you are looking for licensed real estate Fredericksburg TX agents, or to find a Fredericksburg homes for sale, please check out the NixonRealEstate site today.
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