Whether you are planning to buy your first home or are thinking about moving for the third time, there are a few important questions that you will need to answer to know if you are ready to buy a new home. And having the right team to help you answer those questions is extremely important.
Let’s start with first time home buyers, where should they begin?
First time homebuyers should focus first on their financial situation. What is their credit score, how much debt they have, and what amount of down payment do they have available are three important aspects of whether they can buy a home or not.
What are common pitfalls for first time homebuyers?
One of the biggest pitfalls is credit score especially in the situation of co-borrowers. Often times one of them will not have the best credit and that might limit loan options and they don’t have the choice of not using both because they need two incomes to qualify.
What would be a good first step for a first time homebuyer?
Connect with a local mortgage loan officer and let them walk you through the financial aspects of buying a home. They will also be able to qualify you for a mortgage so you know exactly how much house you can afford which will make your housing hunting much easier.
For those looking to move for the second time or more, what are common issues?
The biggest concern for those looking to move to a new house is how to use their current equity in their home as their down payment on the next home they are purchasing. The second biggest issue is timing, when to put theirs on the market and when to start making offers on the next home.
What are strategies for these situations?
To get access to your equity, you can either sell your home first so that you have the cash or use a swing loan to buy your new home before selling your first home. As for timing on selling and buying, that really depends upon someone’s tolerance for risk and how quickly homes are selling. Once again, your mortgage loan officer can discuss the different options available.
What else do second time home buyers need to remember?
If this is the first time selling a home, they might be surprised that they need to do a little sprucing up and decluttering. Staging your house to make a great first impression is extremely important in getting maximum value for your home.
What is the best way to reduce the stress of buying a home no matter your situation?
Find a realtor that understands your situation and find a local mortgage loan officer who is willing to help you work through any financial situation. These two professionals are the most important members of your home buying team because their knowledge will provide the comfort that you need.