Saturday, April 12, 2014

Get Prepared Prior To Buying A New Home

By Pammy McGrath


If you have been spending your weekends browsing open houses and can't wait to buy a new home, this is an exciting time for you. On the other hand, it's a huge purchase and the entire home-buying process can be overwhelming. For those ready to look for a home to buy, consider completing some initial work prior to getting out there and looking at homes.

You hear a lot about pre-qualifying for a home and pre-approval for a home. These are two different kettles of fish. Pre-qualifying is a simple process where you contact a lender and they give a quick indication of how much of a loan amount you can handle. While it gives you a good idea of what you can afford, it isn't set in stone. It is much better to think about getting pre-approved prior to searching for a home.

Pre-approval takes time and usually you incur a small fee for the process. You must meet with a lender and this person takes into account all of your income, all of your monthly expenses and your credit history. From there, the lender determines how much the bank or lending company will lend you for a home. When you start shopping for homes, not only will you know how much you really can spend, sellers typically are more willing to sell to pre-approved buyers because these buyers are less likely to have problems during escrow.

In theory, the whole process of pre-approval begins many months before you meet with a lender. In the six months leading up to buying a home, this is the time to strengthen your credit score and save up money for your down payment, your closing costs and other fees associated with buying a home. Obviously for many buyers, your down payment will come out of the sale of your current home. However, the months prior to buying a home are scrutinized by lenders so don't open new credit card account or purchase any big ticket items prior to buying. This is a time to look as steady and responsible as possible.

Also type up a list of your wants, likes and dislikes for your realtor, as well as sharing how much you wish to spend and your pre-approval loan amount. All of this is essential information for a real estate agent. While you probably cannot realistically find a home that has every single feature you want, be sure to share the most important items with your realtor. This will include the locations that you want as well as the size and general configuration of the home's layout.

Of course, finding a terrific realtor definitely helps make the home buying process a lot easier. For buyers interesting in Kerrville real estate, Fredericksburg real estate, San Antonio real estate or any type of Texas Hill Country real estate begin your search with a call to Nixon Real Estate. This team of seasoned real estate veterans can help you find a great home in Texas Hill Country.




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