In a market where houses are selling fast it is important to be prepared when you find the right home. Make sure you are ready to put an offer on the perfect home by asking yourself the following questions.
Are you employed and have a steady job? Even if you have only been at your work for a few months, you can still apply for a loan. It will depend on your income and what debts you currently owe and of course your credit score.
Have you established credit? You will need at least two different creditors where you pay your bills. Typically a car note, a credit card, sometimes a monthly rental can be used to help establish your credit and show that you pay your bills on time. Request your free credit report from all three credit bureaus, Equifax, Experian and TransUnion and correct credit errors you may find.
Sometimes correcting credit errors can take a few months, but it’s better to do it now before you find that dream home and can’t get it because of a credit mistake. Check your FICO score. A score of 680 is preferable but you can get a home with a score of 580 in some instances.
If your answer is yes, you need to decide what is important to you in finding a home. Do you want to live in the city or the countryside? How big does the house need to be? Remember that you may not find everything you want in your first home. How many bedrooms and bathrooms will you need? Do you need or want a yard? Are schools important? How far is it to your job?
Once you’vee decided what you want then you should talk with a mortgage lender or a bank. They will check your credit score and based on what you have told them, they can tell you how much money you will qualify to borrow. They can tell you what payments would be and how much cash you will need for a downpayment, closing costs and prepaid items, like homeowner’s insurance and taxes. Your mortgage lender or bank can tell you what type of loan would be best for you.
You will need this pre-qualification letter when your offer to purchase is sent to the seller. This shows the sellers that you are serious and have already taken the neccessary steps toward getting a loan.
Now you are ready to gather your documents together, items like pay stubs, tax returns for the past two years. bank acccount statements, rental statements and your previous address and current landlord information.
At Azalea Real Estate we love to work with first time homebuyers and we have the experience you need to represent you with your first home purchase from showing to closing. We can answer your questions and help guide you through the home purchase. Visit www.alhomesandland.com or contact Aleta Boudreaux, REALTOR© at 251-656-4576 – Azalea Real Estate Agency in Grand Bay for your real estate needs.
MORE INFORMATION: Take a quiz HERE to see if you are ready to buy a home