The home buying process may seem daunting to someone who has never purchased a home before. But, with the assistance of an experienced loan officer and Realtor, a first-time home buyer can obtain a better understanding of their financing options, leading to a more positive home buying experience.
Whether you’ve been dreaming of owning a Dallas home for years or you’ve just decided it would be a smart financial move to make, your first home buying experience will be a memorable one. It’s important to learn about your financing options in order to find the mortgage that’s right for you.
7 tips for Dallas first-time home buyers:
1. Educate Yourself About the Mortgage Process
By taking the initiative and learning about the mortgage process, you can be more confident in the financial decisions you are making. It’s important to learn about different types of mortgages, how much you can afford, how your credit impacts your interest rate, and the benefits of home ownership. A mortgage tutorial is available at http://smartedgebygmac.com, which breaks down the home buying process into easy-to-understand steps.
2. Save Just a Little Bit More
It’s not only important to save money for the down payment and closing costs, but it’s important to factor in some of the other costs of home ownership such as decorating, repairs and maintenance. Many mortgage lenders recommend that first-time home buyers have at least three to six months of additional savings in their possession in anticipation of these additional expenses.
3. Check Your Credit
An individual’s credit score will have a significant impact on his or her mortgage loan approval and interest rate. A good first step in financing a home purchase is to check your credit history. You can request a free credit report from any of the three credit reporting bureaus: Equifax, TransUnion or Experian. Carefully review your report and contact the credit reporting bureaus to correct any inaccuracies.
4. Shop Around for a Mortgage Lender
As you start thinking and preparing for the home buying process, start shopping for the mortgage lender from whom you would like to obtain a mortgage for your new home. Because this process is new, it’s easy to go with the first lender or loan officer you meet. Instead, take your time and shop around. Don’t know a mortgage lender, contact us, 800-326-9011 or email us by clicking here. We are glad to give you a couple of references. When you’ve identified two or three loan officers, ask for references. In addition to pricing (interest rate and closing costs), focus on customer service as well as other services and tools that a mortgage lender may be able to offer you.
5. Get Pre-approved
Before you start working with a real estate agent, consider contacting a mortgage lender to obtain a pre-approval credit decision. A loan officer will review your financial status, including your income, cash flow and credit score, to help you determine the maximum monthly housing payment for which you may be able to qualify, and, if qualified, “pre-approve” your mortgage before you’ve found a home. Armed with a credit pre-approval, you can start searching for homes with a much better idea of your price range, and in turn save time as you will know the right homes to focus on. Obtaining a pre-approval may offer more confidence and certainty to home sellers in your ability to purchase the home.
6. Don’t Be Afraid to Ask Questions
Once you’ve found your new home, the mortgage lender will help you through the details of the loan process. From application to closing, your loan officer will work through the financing process with you, just as your real estate professional should do in the home buying process. Throughout the process, read all loan documents carefully, and involve an attorney, if necessary.
7. Inspect
Before you commit to purchasing a home, don’t forget to hire a licensed home inspector to conduct a thorough assessment of the property. An inspector can alert you to any major problems with the home, and/or help you understand potential short-term and long-term home maintenance issues.
Are you a first-time Dallas home buyer…or want to be, but have lots of questions? Just give us a call at 800-326-9011. We can sit down with you and answer all your questions…no obligation!
Start your Dallas home search by looking at homes for sale and get a list of new Dallas homes for sale emailed to you as they hit the market.
Tags: dallas first time buyer, Home Buyer, Real Estate
This entry was posted on Tuesday, June 17th, 2008 at 11:27 am and is filed under Home Buyer, Real Estate, Tips for Buyers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.