Real Estate Matters
By Elisa Jo Eagan
Buying your first home is equivalent to embarking on a grand adventure. Although extremely thrilling, learning the ins and outs of the process can often seem overwhelming. From determining a budget to obtaining a mortgage loan, there are numerous factors to take into consideration along the way. Keep these five tips in mind throughout the journey.
Work with an experienced, supportive real estate agent
Make a connection with a real estate agent who will assist you and fully understand you, listen to your needs, requirements, and your specific search criteria and will guide you throughout every step of the entire first-time home buying process.
You will be surprised how much easier it is to work from the start with a real estate agent who looks out for you, who will cheer you on, who will protect and negotiate along with you and will help you save money wherever possible.
One of the many additional features offered by your real estate agent is to suggest to you the best options of qualified professionals available to assist you in the home buying process, and, most importantly, put you in touch with a local, experienced mortgage company representative that will make financing your dream home possible.
Check your credit score
Your credit score impacts various aspects of your life, especially when it comes to buying a home. It is a determining factor in being approved for a mortgage with the best interest rate.
Credit Karma offers free credit reports and a phone app which can help you keep track of your accounts and monitor your credit, which can also help you catch what might be negatively affecting your credit score.
Keep in mind that Credit Karma is a simulation estimate of your actual credit score. Having a good mortgage company representative is your best bet to help you and to explain your credit score in greater detail to prepare and guide you in improving your credit for obtaining a mortgage loan.
Be realistic about what you can afford
When setting a budget, it is important to be realistic. To keep your head out of the clouds, consider making a master list of the necessities, such as the number of bedrooms, baths and square footage, and a separate list of the extras, such as hardwood floors and a modern kitchen, that you are willing to compromise on. Many first-time buyers update their home piece by piece, creating the ultimate dream home.
Gather all necessary documents
To get prequalified for a mortgage loan, lenders typically require various documents. It is advantageous to collect pay stubs, bank statements and W-2s from the past two years. Ensuring your paperwork is organized will eliminate having to scramble every time your lender requests additional information.
Get preapproved for your mortgage loan
Once your credit score is deemed acceptable and the required documents are submitted, you will be able to begin the preapproval stage. Being preapproved allows you to submit an offer with confidence, and puts you on an equal footing with competing bids.
As with any adventure, the destination is the most rewarding part. Take the time to enjoy it; you only get to be a first-time home buyer once in a lifetime.
Remember there’s no place like your own home. Happy house hunting!
For real estate information and advice, contact Elisa Jo Eagan, the “Real Estate Godmother,” at 609-703-0432. Learn more at www.TheRealEstateGodmother.com.
