When & How to Start the Home Buying Process

Some home buyers need to understand some basic requirements before beginning their home search.  If you are a cash buyer, some of the following rules may not apply in your situation.  First, you need to have a steady source of income; usually a reliable job with 2 or more years being employed on a regular basis.  Should not make a job change during the contract phase, this may lead to other complications.  Second, in most situations, you need a 680 or greater credit score.  The credit score is an indication of what type of record you have in paying bills.  Recommend prior to beginning your home search that you review your credit reports from all three credit bureaus.  This may save you time and frustration.  Third, need to have few long-term debts, such as car payments and student loans.  Fourth, most loans require a minimum down payment.  FHA currently, requires 3.5% down payment, conventional loans require a higher amount.  Another possibility, you might consider getting a USDA loan which requires no down payment if you are willing to live in a rural area.  Fifth, you must prove to your lender that you have the ability to pay your mortgage payment, plus other additional costs.  Sixth, you need to determine how much space, type of home, and acceptable areas where you would like to live.   Drive through housing subdivisions, and talk to friends and family.  Additional, there are many resources on the internet to do your home research.