If you’re asking “what is the first step to buying a home” then you’ve probably made the decision it’s time to get serious about becoming a homeowner. You’re ready to start building equity and financial stability for your future.
Securing Your Financing.
You will most likely be financing your home purchase with a mortgage through a bank or loan company. But, before a lender decides what they’re willing to offer you, they will want some background information, such as employment history, salary, and credit history. To help streamline the process, be prepared with these documents.
You will sign paperwork so the lender can pull your credit report, and they will then hand you a letter stating your maximum purchase price. You can then use this price point to help you narrow down what type of a home you can afford.
This step doesn’t sound super exciting, but it is a necessary first step. It is ideal to start your house hunt with realistic expectations.
How a Credit Report Helps You Buy a Home.
A credit report essentially gives you a glance at your financial habits. You will see how efficiently you are paying debts and if you tend to borrow within your means. By checking your report you can gain a better understanding of how it affects the purchase price you qualify for.
Ask your Freedom 512 Realtor for help getting started with the home buying process.
