Buying a home should be a long thought out process. You want to make sure that you are in a situation where buying is the right choice. However, it is such a good feeling to be building equity, and not throwing money down the drain. There is a time to rent, but if you are making regular rent payments and going to be in the area for more than a few years, you should seriously consider buying. Once you have decided to buy, there are a few different steps that you can take that will streamline the process and make your experience buying a home a more enjoyable one. Here are three things to do when beginning the process to buy a home.
Improve Your Credit
One of the first things that you should work on is your credit. If you have been making payments on a car or utilities you may have been building positive credit. If you have been late on any bills, then you may have hurt your credit. Check your credit and find where it stands. The better your credit score the more likely you are to qualify for a home, but also to qualify for a low interest rate. If you find your score is low, then start working with a credit repair organization to improve your credit score.
Pre-Qulaify For A Mortgage
Once you have worked on your credit and put it in the position to buy a home, talk to a lender. You want to pre-qualify to buy a home. When you are pre-qualified to buy a home, you have an advantage over most looking at homes. First you know exactly the amount you will likely be approved for, so you can narrow your home search. You will also have a pre-qualified slip that allows sellers to know that you are likely to qualify to buy the home. To become pre-qualified you will need your pay stubs from the last few months, your tax returns for the past two years, driver's license, and the lender will likely pull your credit.
Work With A Realtor
If this is your first time buying a home, or even if it is your tenth time buying a home, working with a realtor is a good idea. They will be able to get you access to multiple homes that meet your criteria, but they will also be able to give you knowledge about the housing market in the area. Not to mention they will help you with all the paperwork.