You are tired of paying rent, and you have thought about purchasing a home. Where do you begin? Buying a house can seem intimidating, especially when you are young and you are not familiar with the process. The good news is buying a house is a great investment, and if you pair with The Vince Carter Team, we will arm you with all the information you need.
The first step in the process is to determine how much you can afford. Before purchasing a home, you want to ensure you are financially prepared. When you have money saved, you want to make the move from rent to house payments, because in the long run, that’s saving you money. You don’t want to become “house poor” because all your paychecks go toward your mortgage.
Second, prepare your finances. You will have to provide a lot of financial documents to the bank. To stay on top of the paperwork required, prepare your financial records for the mortgage process. You will need past and current bank statements, investment statements, tax returns, pay stubs from your employer, and various other documents. Your loan officer of choice will guide you through the process and request documents as needed.
Put together a folder or envelope with documents you’ll need for your mortgage application: paystubs, W-2’s, and bank statements.
If you have a poor credit score, it is not the right time to buy a house. There are various ways you can improve your credit score. This is why it is so important at the beginning of a house search process to discuss your finances with a loan officer. If your credit is too low, they will be able to help you with some tips or even refer you to someone that can help you raise it. It will take some time, but the higher score will help you significantly when purchasing.
Even if you are not thinking of buying a house until a few years down the road, it is a good idea to set aside money each month for a down payment and other expenses that come with buying a house. Your down payment is typically between 3.5 and 20 percent of the house purchase price. The larger your down payment, then the smaller your monthly payments will be. There are also closing costs associated with the purchase of a home. This amount varies depending on the type of loan (FHA, VA, Conventional, etc.) you receive and fees of the lender.
Step three is to get a mortgage pre-approval. This will make you look like a serious, qualified buyer. Research the various mortgage types, such as fixed-rates, adjustable rates and ARMs. Shop around for mortgage rates and pre-approvals. You want to receive the best rates and compare the numbers from various mortgage lenders.
The Vince Carter Team is ready to walk beside you through the exciting process. We will make you confident and knowledgeable in the home buying process and reduce the stress and hassle by informing you each step of the way!
**We are a local Commercial and Residential Real Estate Brokerage and team. Our mission is to give Western Kentucky buyers and sellers an exceptional real estate experience! The advantage of working with our team is having a group of professionals who are skilled and specialized to serve your needs versus an individual agent trying to be a master of all trades. Innovation, creativity, and a consultative style drive our process that will help you effectively and efficiently, whether it’s residential or commercial real estate. For more information contact us directly at 270-908-0020 or www.WeSellPaducah.com.**