1. Estimate What You Can Spend on a Home
Sizing up your finances early can prepare you to find the best home loan. Use a few standard guidelines to gauge your homebuying power:
____________ Estimate two and a half times annual income.
____________ Calculate 28% of before-tax income for monthly housing debt (mortgage payments, property taxes,insurance and any maintenance costs for a co-op or condominium).
____________Get a rough estimate of how much you can afford now with our How Much Can I Borrow? Calculator.
____________Start gathering relevant financial papers needed for your application and be one step ahead of the game.
2. Get Pre-Approved
A pre-approval is a letter from a lender to give homebuyers a specific loan amount and loan type. You can
get pre-approved before or after you have found a home to buy.However, many buyers find that they have
increased negotiating clout if they are already pre-approved when they conduct their home search.
__________ Check your credit report, if needed, to make sure there are no surprises.
__________Apply for pre-approval.
3. Find the Right Home
House hunting can be fun and exciting, but you have to do some homework to find the right
home for you.
___________ Investigate neighborhoods and schools.
___________ Conduct a cost-of-living comparison if planning to buy in a different geographical area.
___________ Prioritize desired home features. Get started with our Wish List
___________Choose a realtor
___________ Make an offer and negotiate a final price.
___________ Have the home inspected.
4. Close the Purchase
If you’ve followed the steps above,these final stages of the home purchase should go smoothly:/p>
__________ Find the best mortgage in houston for you.
__________Organize your documents and information before you apply. Follow our post: How to get a Mortgage Loan in Houston
__________ Apply for a mortgage formally to obtain a mortgage commitment letter. For homebuyers with pre-approvals,this will be a formal application.
__________ Close the loan. A realtor,settlement agent,or attorney generally walks homebuyers through the process of meeting contract contingencies and scheduling settlements.
__________Move in and celebrate