Buying a home for the first time can seem daunting, but when you narrow your focus and stick to a checklist, you can streamline the process to be in your new home sooner than you expected. Grand Homes has created a helpful checklist that you can refer to as you make plans to buy your first home. Buying real estate remains one of the most reliable investments we can make. We’re here to help you if you have questions.
1. Manage Your Finances
Before requesting a loan from a bank or lender, you want to ensure that your finances are in good order. If your partner also plans to be listed on the mortgage, it’s important that you both check your finances to ensure there are no problems. Typically, banks want to know that you have money set aside for a down payment (20% is usual) and that you have a history of paying your bills. If you owe too much on other loans or debts, you may want to address those issues first so that a bank doesn’t decline your loan request.
2. Check Your Credit Score
To purchase a home, you want your credit to be as good as possible. A better credit score invariably means a better interest rate — and that means a lower mortgage payment and less interest owed. If you uncover problems in your credit report, take time to sort them out. Pay off outstanding debts to ensure that your credit report is as blemish-free as possible. Also, if you don’t have much credit, consider applying for a credit card or two. It’s OK to keep a low outstanding balance on these cards as long as you make on-time payments. This helps build up credit.
3. Hire a Real Estate Agent
Even veteran home buyers rely on the expertise of real estate agents to help them buy homes and navigate the purchasing process. A savvy real estate agent will get to know you and your goals, helping you find the ideal property. They can also set up home visits for you and perform all of the administrative aspects associated with bidding, hiring inspectors, and lining up contracts.
4. Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage eliminates headaches. Few things are worse than finding your dream home only to be turned down by the banks for a mortgage. So, take care of this formality before you go house hunting. The bank will let you know the amount that you’re approved for so you can avoid looking at homes that are beyond your budget range.
5. Schedule a Home Inspection
A home inspection is a crucial step in the home-buying process. Even in a new home, you’ll want your inspector to provide you with a detailed report to ensure that all systems of the home are functioning and that there are no major issues that could be deal-breakers. A thorough inspection gives you — and the bank — the peace of mind needed to move forward with the final contracts.
Looking for a high-quality first home? See what Grand Homes has to offer by visiting our available homes in custom communities filled with amenities and situated in premiere DFW locations. We feature more than 35 communities, each filled with a wide array of home designs to choose from.