So you’re ready to buy a house. Congratulations! The Coldwell Banker Innovations team has compiled a short list of things you’ll need to keep in mind in order to make the entire process as stress-free as possible.
Prior to the burst of the housing bubble, getting a mortgage seemed to be something that almost anyone could do. Simply sign a few documents, pay a down payment and you were on your way! Now, getting approval for a loan is a bit more difficult, but the good news is banks are once again lending. Documentation, employment verification, and credit scores are still very important when it comes to mortgage approval, so make certain you have all your “ducks in a row”.
Many agents feel the most important ingredient to mortgage approval is the state of your credit score. It’s important to request a copy of your credit history from all three reporting bureaus: Equifax, Transunion and Experian. Go over these reports very carefully and be certain to contact these agencies if you find any discrepancies. Often, it’s a very easy process to have errors and negative notes removed from your credit score via a simple phone call. If you discover your credit score isn’t where lenders want it to be, it’s imperative to make a dedicated commitment to improving it as soon as possible.
Before your search for a new home begins, inspect your finances in order to ascertain how much of a down payment you can use as well as understanding just how much you can afford. Don’t be shocked by down payment requirements. Some loans may require as much as 20 percent of the total value of the property as a down payment, while other loans such as FHA’s may require as little as 3.5%. Either way, it is wise to ensure that you don’t overspend, and don’t forget you’ll also need some cash for closing costs.
Finally, sit down and imagine what requirements you really desire in your dream home. Talk at length with your real estate agent, as they are dedicated to being your closest ally in the hunt for the perfect home.
The process of buying a home can take time but ask any homeowner and they will agree, it is an incredibly rewarding experience. If you’re ready to start your search for the perfect home, please contact us at 301.745.1500. We will be happy to answer any of your questions and match you up with a talent agent who can help you traverse the home buying landscape!