How To Prepare Yourself When Buying A Home
Think you're ready to buy a home? You may be in the right mindset when looking at houses, but not prepared in every possible way. Here are some things you should do to prepare yourself when buying a home.
Find A Lender
Chances are that you will need financing in order to purchase a home you are interested in. However, the process of finding a lender starts before you find a home. You will need to get preapproved for a loan. This is the step where the bank gives you an approximate idea of how much money they will allow you to borrow towards a mortgage, which is the amount left to pay after providing a down payment of your own. For example, if you're pre-approved for a loan of $200,000, this means you could technically buy a home that is $250,000 with a 20% down payment of $50,000.
Having the pre-approval letter is also key in getting a seller to accept your offer. Sellers don't want to deal with buyers that won't be able to get the financing they need because the purchase of the home could fall through and waste the seller's time. A pre-approval letter can help separate your offer from other buyers if there are multiple offers on the same home.
Find A Realtor
You'd be surprised at how much the typical buyer can do on their own when it comes to finding a home. Thanks to real estate search engines, you can do most of your browsing without a realtor assisting you. However, you'll want to have a realtor working for you when you are ready to make an offer and one that is not the seller's realtor.
It is a good idea to have a realtor lined up, even if you do not plan on using them to find your home. When you are ready to submit an offer, you'll need to move fast. Without a realtor, you'll waste time looking for somebody to help you with the offer process—and potentially get beat by other buyers.
Consider visiting local open houses and meeting realtors that are selling homes similar to the ones you are interested in. Talk with them, see if they are a good fit for what you are looking for, and get their contact information. You can always give them a call when you are ready to submit an offer on real estate for sale.