Monday, April 28, 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.

The pre-approval process is longer and includes actually sitting down with a lender and sharing your credit scores, your income, your expenses and other financial information. You will pay a fee for a pre-approval application, as well. However, being pre-approved for a loan makes the buying process easier because you don't waste time looking at homes that you cannot afford and once you find a home, a pre-qualified buyer looks much more attractive to a seller. So if a bidding war ensues and you are the only pre-qualified buyer, this gives you the advantage.

If possible, you actually need to get ready to buy months before you start searching for a home or even talk to a lender. Begin by saving up for the down payment and costs associated with closing escrow. Even if you are selling a house to make your down payment for the next house, you still should be saving for extra expenses such as repairs or updates to the new home. Do not make large purchases or open new credit card accounts in the months leading up to a home purchase. The less debt you have, the better you look to a lender.

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.

Choosing a great realtor is always the best way to ensure that you find the best home and that the buying process runs smoothly. If you are searching for Texas Hill Country real estate, consider calling the team at Nixon Real Estate. They can find Fredericksburg real estate, Kerrville real estate, San Antonio real estate and homes for sale throughout Gillespie County and the surrounding area.

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