The first time buying a home can be overwhelming and confusing. There is so much to learn in a short amount of time and other competitive home buyers interested in the same home as you won’t slow down to allow you time to catch up. To avoid missing out on your dream home because you forgot to bring some paperwork or skipped a step read below.
1. Research Several Banks
You will most likely need to take out a loan to buy the home. It is in your best interest to shop around and talk to several banks. Do your research beforehand to know what to expect. The heavy home buying season is April to August so keep in mind that if you are shopping during this season it may take longer for approval.
2. Be Proactive
Your credit score is very important for approval for a loan and the interest rate charged. Pay down debt to boost your score and keep an eye on it before you start shopping for a home. A mortgage loan requires a lot of paperwork. Have everything together before talking to a bank about a loan. This includes months of bank statements, tax returns and W-2s.
3. Buy Less Than You Can Afford
It is in a bank’s best interest to approve you for more than you need or sometimes can afford. Then you end up paying more for interest. Know what you need in a home and don’t waver. The approval limit is a debt ratio on how much debt the bank’s think you can afford. Crunch the numbers yourself so you know what to expect. It is better to be conservative with the size and cost of the home.
4. Hire A Good Agent
Just like you should do research on bank loans, research the agent that will be helping you through this process. You want someone experienced and knows the area well. This will be one of the largest purchases you will make so don’t take it lightly. If the agent is just sending you listings you can find online, find someone else.
5. Move Quickly
Get pre-approval for a loan if you can. If you can’t you need loan approval within 30 days of placing a bid on a home. Let your bank know as soon as you place a bid. Don’t skip steps like inspections. That will hurt you in the long run.
Thank you for visiting Barton Harris’s blog, an Austin real estate firm. We write to keep you informed on everything real estate. If you are looking to buy a home in the Austin area contact one of our experienced realtors today.