Six Tips to Guide You through the Home Buying Process
Congratulations! You have made the decision to purchase a new home. Whether you’re a first time homebuyer or purchasing your second, fourth, or sixth home, this is a big step that can be an exciting but also daunting process. Follow these six tips for making the home buying process smoother.
- Check your credit report – Do you know your credit score? If you don’t we suggest checking your credit score with Equifax, Experian, and Transunion. Your credit score, along with your debt-to-income ratio, will help determine how much a lender will qualify you for a mortgage loan. Make payments on any outstanding bills to lower the amount you all. Checking your credit report will also allow you to see any erroneous information on there and give you time to dispute those items. You should avoid purchasing big ticket items (car) to avoid having your credit score change as well.
- Organize financial documents – A lender will want to see your bank statements, pay stubs, previous tax returns, and current W2’s. Locate, organize, and put these items in a safe and easily accessible place.
- Get pre-approved for a home loan– We suggest getting pre-approved for a loan. This will help narrow down the homes in Alamogordo you are interested in and can actually afford. Custom homebuilders, like French Brothers, sometimes work with preferred lenders. Inquire with the homebuilder to see if it is worth going with their lender or a different one.
- Determine how much you can afford – Keep in mind that what you qualify for and what you’re personally comfortable spending can be two different things. Only spend what you are comfortable with. The goal is to enjoy yourself in your new home. The last thing you’ll want to do is overextend yourself by purchasing a more expensive home. Use a mortgage calculator to estimate your monthly payments. Include any HOA fees, taxes, utilities, and homeowner’s insurance.
- Create a must have list and wish list – Now that you know what you can afford you’re able to think about your ideal dream home. Maybe you’d like an open floor plan or you may need to accommodate someone with mobility issues. Make a list of what you actually need to have on your list that won’t make you walk away. Though it’s unlikely you’ll find everything in a home determine what you are willing to compromise on. Don’t get caught up on things you can change like paint color and flooring.
- Search, search, and search some more – Start looking at homes that meet your criteria. Make sure you can envision yourself in that home and in the community. Take into account amenities the neighborhood offers as well as surrounding community. Also calculate commute time, accessibility to extracurricular activities and school districts.
We hope these steps will help ease the process of buying your new home. Contact us today at (575) 404-1668 for details on the French Brothers New Home Buying 101 guide and to learn about our available quick move-in homes in Alamogordo at Hermosa El Sol, Palo Duro, Silverado, and Valencia.
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