Home Buying 101: The First Step to Buy a Home
Searching for a great home means searching for a great lender.
This is the absolute first step to buying a home!
Do not skip this step!
Interested in buying a home but aren’t sure about where to start?
Talk to a lender first, before looking at any houses. I know, I’m sending you somewhere else other than me! It’s important to have a budget so the home search is narrowed down to homes you can afford.
A lender will ask for some basic information to be filled out in an online application.
The information typically requested includes:
- Personal information such as name, address, phone number, and Social Security Number
- Employment history – Income and assets
- Credit score
- Property details such as the address of the home you are looking to purchase and estimated purchase price
Basic information will include income and any debts you have (like a car payment, rent, or student loans), and they will run a credit check. The better the credit, the better deal you’ll get on your loan!
If you’re worried about mistakes you’ve made in the past or are working to repair your credit, a lender can also help direct you on where to focus first to get the fastest and best results at raising your credit score. I always say that bad news doesn’t get better with time. If you want to raise your score, there’s no better time to start than today!
Once the application is filled out, a lender will provide a pre-approval letter and shopping may commence! Any offer submitted must have that pre-approval letter attached to be considered by the seller.
Assemble Your Team.
Your realtor and lender make up part of your home buying team. They will work together to make sure you can qualify for, and purchase, the home you want. Often they will communicate during offer submittals and negotiations to ensure the offer made is within the means of the buyer.
Then you’ll join your trusted local realtor in searching for homes, which can be the fun part!
Once an offer is accepted, the lender will order a full appraisal of the property and review all documentation to ensure that it meets their lending criteria. If everything looks good, they will issue a commitment letter and the loan process can move forward. The buyer will then need to provide any additional documentation requested by the lender and complete any other steps in the loan process.
Once all conditions are met, you become a new homeowner!
That is a lot to think about.
I have your lender fears covered. Check out this interview with Austin Foss, a local lender here in Central Texas.
If you want to know more about buying and selling a home learn more here.
I sell homes in Central Texas. If you are looking at homes for sale in the Mueller Neighborhood, Austin, TX, or the surrounding area, please reach out to me. If you already own and have penchant to move, reach out. And please recommend me to your friends and family. Thanks.
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