5 Steps to Purchasing the Right Home
Purchasing a home can be an exciting yet nerve-wracking experience. After all, making a home purchase is a major financial investment. At the same time, if you take the time to find the right home at the best possible price, buying a home can be a very satisfying experience that can bring joy for many years to come. Still, whether looking at San Antonio homes for sale or those in Austin, be sure to follow these 5 simple steps.
Step #1: Get Your Finances in Order
To help keep your interest rate as low as possible, be sure to take steps to improve your financial situation before you start looking for a house. To do this, you will first need to obtain a copy of your credit report. Next, look over the report and correct any problems that you might find. Even the simplest error can drastically affect your credit rating, which will then affect your interest rate. If there are no mistakes on your credit report, but your credit rating is still on the low side, take steps to improve it by paying down your debt and handling your debt responsibly. Even if you have to postpone your house buying plans by 6 months, you will be glad that you did when you receive a much lower interest rate.
Step #2: Determine How Much You Can Afford
Once your finances are squared away, it is time for you to decide how much you can afford to pay and how much you are willing to spend on your new home. Remember, just because you can afford to pay a certain amount, it doesn’t mean you have to pay that much. Decide how much you are comfortable spending and then start your home search from there.
Step #3: Get Pre-Approved for a Loan
Getting pre-approved for a mortgage loan before you start your search for a new home offers many benefits. First, it gets you thinking about the type of mortgage loan you want to take out, which will further help you get your finances squared away. Second, it will give you a very clear idea of what your monthly loan payments will be. Finally, it gives you bargaining power when putting a bid on a home. Since you have already been pre-approved for a loan, sellers will be more likely to accept your bid because they know there will be no problems with you getting a loan.
Step #4: Hire a Real Estate Agent
While there is a cost involved with hiring a real estate agent, hiring one who specializes in the neighborhoods where you wish to live will go a long way toward helping you find the home that is right for your lifestyle and budget. Your agent will also be able to help you evaluate the asking price and to negotiate a better deal.
Step #5: Get an Inspection
Once you have found the house that you want to buy, be sure to hire an inspector to examine the home before you close on the deal. An inspection will help you learn more about the home, including any problems that the home may have. If the inspector determines that there are problems with the house, you can use this information to negotiate a better deal or to have certain issues repaired by the seller before you close on the home.
About The Author – Richard Soto specializes in Cordillera Ranch San Antonio in his experience as a San Antonio real estate agent.