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.
Do you need to be pre-qualified or pre-approved for a loan? This is question that people often want answered. In general, pre-qualifying is a simple process where a lender quickly gives you a very general idea of how much you might be able to get for your loan amount. It is no guarantee that you actually will be able to get that amount, but it provides you with a quick estimate of what your budget should be. It's usually free and often only takes minutes, so while it can be a great first step, pre-approval actually is more important.
Pre-approval takes time and usually you incur a small fee for the process. You must meet with a lender and this person takes into account all of your income, all of your monthly expenses and your credit history. From there, the lender determines how much the bank or lending company will lend you for a home. When you start shopping for homes, not only will you know how much you really can spend, sellers typically are more willing to sell to pre-approved buyers because these buyers are less likely to have problems during escrow.
In theory, the whole process of pre-approval begins many months before you meet with a lender. In the six months leading up to buying a home, this is the time to strengthen your credit score and save up money for your down payment, your closing costs and other fees associated with buying a home. Obviously for many buyers, your down payment will come out of the sale of your current home. However, the months prior to buying a home are scrutinized by lenders so don't open new credit card account or purchase any big ticket items prior to buying. This is a time to look as steady and responsible as possible.
Before you meet with your realtor you also need to know what you need and want out of the new home. While it helps to be realistic and keep an open mind, your realtor needs to know essential information such as the area in which you want to live, the school district you must be in, the size of home you need and the style of home you prefer. Be as specific as possible and list a few of the biggest must-have items at the top of your list. If you have some deal breakers such as a home too far away from work or on a busy street, be sure to put those down as well.
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.
Do you need to be pre-qualified or pre-approved for a loan? This is question that people often want answered. In general, pre-qualifying is a simple process where a lender quickly gives you a very general idea of how much you might be able to get for your loan amount. It is no guarantee that you actually will be able to get that amount, but it provides you with a quick estimate of what your budget should be. It's usually free and often only takes minutes, so while it can be a great first step, pre-approval actually is more important.
Pre-approval takes time and usually you incur a small fee for the process. You must meet with a lender and this person takes into account all of your income, all of your monthly expenses and your credit history. From there, the lender determines how much the bank or lending company will lend you for a home. When you start shopping for homes, not only will you know how much you really can spend, sellers typically are more willing to sell to pre-approved buyers because these buyers are less likely to have problems during escrow.
In theory, the whole process of pre-approval begins many months before you meet with a lender. In the six months leading up to buying a home, this is the time to strengthen your credit score and save up money for your down payment, your closing costs and other fees associated with buying a home. Obviously for many buyers, your down payment will come out of the sale of your current home. However, the months prior to buying a home are scrutinized by lenders so don't open new credit card account or purchase any big ticket items prior to buying. This is a time to look as steady and responsible as possible.
Before you meet with your realtor you also need to know what you need and want out of the new home. While it helps to be realistic and keep an open mind, your realtor needs to know essential information such as the area in which you want to live, the school district you must be in, the size of home you need and the style of home you prefer. Be as specific as possible and list a few of the biggest must-have items at the top of your list. If you have some deal breakers such as a home too far away from work or on a busy street, be sure to put those down as well.
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.
About the Author:
Pammy McGrath enjoys reading real estate blogs. If you are searching for certified real estate Fredericksburg TX agents, or to discover a Fredericksburg homes for sale, please check out the NixonRealEstate site now.
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