Buying a home can seem like an overwhelming and complicated process, and the truth is, it can be. Fortunately, if you go about buying a house in a methodical way and plan well, you can make the process a little more easy to manage. Over the next few weeks in our blog posts we’ll talk about the process of buying a home and how to make it work for you.
The First Step in Purchasing a Home
Before you even set foot in a home that’s on the market, you have to get your financials in order. This means credit scores, pre-approval, mortgages, first time buyers programs (if you’re a first timer) and possibly a lawyer. Let’s get into some specifics.
- Credit Score – Your credit score measures how reliable you are in terms of paying off your debts on time. This includes things like credit card payments and bills. Your score can range anywhere from 300 (worst) to 850 (best). You build your credit score by paying off bills and payments on time. Having a good credit score is important when buying a home because it can get you a better interest rate on a mortgage. Even a difference of half a percent can save you tons of money over the years you pay.
- Pre-approval – Before you start shopping or dealing with a real estate agent, “apply to several lenders within a two week period so that the inquiries do not damage you credit report.” This will tell you how much house you can afford. This benefits you in several ways. First, it keeps your purchase expectations realistic, because you know what you can and can’t afford. Second, if you get pre-approved, you’re much more attractive to sellers, who will recognize that the deal has a better chance to go through if you already have the backing of a lender.
- Mortgage – It might seem strange to look for a mortgage before you buy a home, but doing so is another way to keep yourself in a ballpark of homes you can afford. A problem many people encounter when buying a home is that they find a home they love but can’t afford, and are unable to find a mortgage to pay for it.
- First Time Buyers Program – Many state and local governments offer first time buyers programs that reduce down payment requirements.
If you’re looking to invest in low-cost properties with lots of earning potential, we can help. Gray’s Home Solutions has properties of all types across the state of Maryland. Contact us for a full list of properties. Even if you’re not looking to buy right now, you can participate in our sellers referral program. Here’s how it works. Send us the phone number and property address for a For Sale By Owner or vacant property. We’ll take a look, and if we buy the property we’ll pay you $250 as a thank you for providing the lead.
Are you interested in learning more about selling your home fast? Our ebook has a ton of great information for you. We also have an ebook with information on how to avoid foreclosure, available for download here. They’re both free, so give them a look. You can also connect with Grays Home Solutions on Facebook, Twitter, Google+, and LinkedIn for more real estate made simple.
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