You decided to buy your first home, but you don't know how. It is exciting and frightening at the same time, and you don't know what to expect. Here are some things to remember before buying your first house:
Your credit score is the most important factor when it comes to qualifying for a load nowadays. You may go online to see where your credit stands. Bankrate is one of the websites where you can get a credit score for free and with no obligation.
"In addition, the standards are higher in terms of what score you need and how it affects the cost of the loan," says Mike Winesburg, a former mortgage planner.
Clean the reports for unpaid accounts, collection accounts, and even mistakes. However, just because you are paying your credits on time every month does not mean that you have a good score. Your credit utilization ratio or the amount of credit you are using against your credit limit can hammer a credit score. You'll have a higher score if you have a lower utilization rate. Repairing damaged credit takes time, so work on it at least 6 months before buying a house.
Work with a realtor who knows the area where you want to buy in. You should be well prepared to move from just wanting to buy to actively looking for a home. Talk to your realtor and list all the things you require in home. Make sure to list down everything you need. Once it is compiled, list all the things you like. With these lists ready, you may start looking for your dream home.
Once you find a prospect home or homes, get a certified inspector to check the house thoroughly. Have them check everything including questionable areas of the house. Make sure that the inspector will check even the tiniest details that might cause a problem in the long run. If the house passes the inspection, then you may go on with the offer if it satisfies you. If not, however, move on to the next house and repeat the process.
