The process of purchasing a home can be just as overwhelming as it is exciting. Not having the correct information about the home buying process can just serve to increase stress. We want to help alleviate some of the stress by providing you with some basic information on the six steps to buying a house.
💯 What Credit Score is Needed to Buy a House
Most buyers are unable to pay cash for a house. If you’re one of those buyers who doesn’t have cash on hand, you’ll want to pay special attention to your credit score. Mortgage lenders generally want to see a credit score of 620 or higher in order to qualify for a loan. There are some instances where you may get a loan with a score of 580, but you’ll want to keep in mind that you’re going to likely pay a much higher interest rate.
Order a copy of your credit report from TransUnion, Experian, and Equifax for free once a year due to the Fair Credit Reporting Act. We suggest that you get a copy from all three agencies because not all agencies report the same information. Check the reports for delinquent accounts and errors. If you find errors, report those immediately because it may take some time to clear up the issues. Make a solid plan to deal with your delinquent accounts and improve your credit score.
💰 How Much Money Should I Save to Buy a House
There is no set amount that we recommend having in your savings account, but there are some guidelines. Most lenders will require about 20% of the cost of the house for a down payment. You may need additional funds to cover closing costs if the seller does not cover those. It’s also a good idea to have a bit extra set aside for any upgrades, repairs, and other expenses that crop up unexpected.
🙋♂️ Finding a Real Estate Agent to Buy a House
We’re looking forward to helping you during your search for the right house. Finding a qualified real estate agent who is dedicated to listening to your needs isn’t always easy, and we’re glad that you’ve decided to come to us for information on the buying process. We recommend that you sign up for a free search & save account on our website. You’ll be able to set the criteria that is important in your search and receive updates when new listings come on the market. We’ll also be here to help with your home search in an effort to save you time and money.
✅ Why Get Pre-Approved for a Mortgage Loan
Get a mortgage loan pre-approval as soon as possible. This pre-approval is beneficial for several reasons. Having a pre-approval gives you a solid idea of where to look when it comes to price ranges. There’s no need to waste time looking at properties in the range of $700,000 if you’re approved for a maximum of $500,000.
Today’s real estate market can be fast paced and fierce. Buyers are competitive, and you want your offer to standout in the crowd. Having a pre-approval attached to your offer may sway the seller to look at you more favorably because you have proven that you’re serious about buying a house and have the ability to follow through with the sale.
📝 How to Make an Offer on a House
Making an offer can make even the most courageous person a little nervous. We’ll be with you throughout the process and help you create an offer that makes sense. We’ll consider the asking price, recently sold homes in the area, your budget, and other factors. Not only that, but we will do the leg work for you. How’s that for lessening your stress level?
🧐 What Happens After an Offer is Accepted on a House
You’ll anxiously await the answer from the seller once you place an offer. The seller can accept the offer, decline the offer, or send us back with a counteroffer. Remember, we are on your side in this process, and we’ll work on your behalf to get the best deal. If they counter your offer, you’ll need to decide if you want to accept or decline. In some cases, you may want to try negotiating a compromise. Once an offer is accepted, the lender will order an appraisal and inspections. If these come back without issues, you’ll be on the way to closing day. If there are issues, you may want to renegotiate the contract. Either way, we’ll be right there with you from the beginning.