Are you thinking about buying a house? If so, this is certainly an exciting time and it is likely the biggest investment in your life. Of course, as with anything, proper preparation and execution is the key to your success. Before you begin touring homes, there are several things that you will need to take care of first. Below, we discuss 5 key things that you will need when looking to buy a house.
5 things needed to buy a house
- 1. A good credit score: Your credit score is a 3-digit number that lenders use to determine your riskiness as a borrower. The higher your credit score, the more likely you will be approved for a home loan. In addition, you will likely be able to qualify for a lower interest rate as well. To learn more about credit scores, check out “How To Build Your Credit For A Home Purchase”.
- 2. Build a good amount of savings: In addition to building a high credit score, it is always a good idea to save as much money as possible in advance of your home purchase. Although you may have a well thought-out plan for your home purchase, you can be assured that you will likely go over your anticipated budget when moving into your new home.
- 3. Obtain a lender pre-approval: You may have heard of a pre-qualification for a home purchase. This is not the same as a pre-approval. A pre-qualification simply requires you to give some basic financial information such as your income and debts. Then your lender will do some quick calculations to provide you an amount that you should be able to borrow. On the other hand, with a pre-approval, the lender will pull your credit report, verify your employment and income, and assess how much money they’re willing to lend you. Needless to say, sellers prefer to see a pre-approval from prospective buyers. To learn more about this, click here.
- 4. Work with a local & knowledgeable real estate agent: There are many obstacles and potential pitfalls when buying a home. A good real estate agent will be well versed with the entire home buying process and will be able to guide you through it. This will ultimately save you money, time, and plenty of headaches. Furthermore, this is likely the biggest investment in your life, and making a mistake can be financially devastating. Lastly, a good real estate agent will also be knowledgeable about your local area and may make you aware of future developments and other items that can greatly impact home values.
- Hire a reputable real estate attorney: It is astonishing to see how many home buyers never think to hire a real estate attorney to assist with their real estate transaction. Even for the most experienced real estate investors, the home buying or selling process can be complicated and confusing. In addition to ensuring that all the paperwork is in order and accurate, it is a good idea to have a real estate attorney involved in the transaction from the beginning should things take a turn for the worse.
Summary
Buying a house is an exciting time in your life. With this said, it is also likely the biggest financial transaction in most people’s lives. It is important that you take the proper steps to ensure that you are knowledgeable about the process and prepared. Needless to say, a local and knowledgeable real estate agent will be your best resource to guide you through this process.
Are you looking to buy or sell real estate in the South Florida market? We can help! Contact our team at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app for your smartphone or tablet as well.
