The First And Most Important Step In Preparing To Buy A House
Is buying a house one of your goals for this New Year?
Are you unsure of how to proceed now that you have decided you are ready to buy a home?
If you can answer yes to one of these questions, then please note, the first and most important step you need to do is to find out what you can afford before you start to actively look at houses.
GATHER FINANCIAL INFORMATION
The most important step in buying a house is doing the prep work before visiting houses. That is, gather information about your personal financial situation. Consult with a Lender if you need to get a loan. Consult with a Realtor® to find out about Estimated Closing Costs. If you do not need a loan you will still need to consult with a Realtor® to find out about Estimated Closing Costs. Consultations with Lenders and Realtors® are a free service.
DETERMINE YOUR BUYING POWER
Meeting with a Realtor® and a Lender will give you the data you need to understand the costs involved in a purchase. Based on these findings you will need to determine what you actually want to spend on a house. What a lender is willing to lend you may be different than what you might want to spent per month on a mortgage. Now is the time to figure this out before you physically visit houses.
SECURE A PRE-APPROVAL LETTER AND PROOF OF FUNDS DOCUMENT
Now that you have consulted with a lender and a Realtor® you need to have a hard copy of a Pre-Approval Letter from a lender or if you are buying with cash you will need a document showing you actually have cash available to cover the purchase price and the closing costs. In both situations you will need to fill out a Buyer's Financial Information Form that explains where your money will be coming from.
Once you have completed these steps you are ready to visit houses and to find your new home!!
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