Go from being ready to buy
If you’re a first-time home buyer who has managed to save enough for a down payment on your first home, congratulations ! You’ve successfully tackled one of the toughest parts of the home buying journey, but you haven’t yet crossed the finish line to homeownership. Now is the time for the follow-up work that can take you from being ready to buy.
Do you know your solvency and your delinquency situation? Otherwise, it is time to request a study from your bank or through your real estate agent and check that you are not on a list of defaulters (Do not pay the electricity or water bill, return a specific receipt or do not pay a monthly contract fee Considering that the company has overcharged you or is incorrect is also considered a type of delinquency) Start working to resolve any errors or outstanding debt before it is time to make an offer on a house. It is important to determine the debt-to-income ratio, reviewing assets and debts. The higher your spending percentage, the more risky the mortgage will have for the banks, which can generate higher interest rates or even the denial of it.
Prepare the paperwork
Start gathering all the necessary documents now to keep the process running smoothly. Depending on your situation, this may include payroll documentation, proof of assets, ID, pay stubs, tax returns, bank statements, previous addresses, and Social Security numbers. Study the documents as you collect them to familiarize yourself with their financial situation, motivate your search for housing, and keep your expense / income ratio low.
Get prequalified or pre-approved
After finding the right agent, the next step is to have a meeting with a bank advisor or your real estate agent (look for one nearby). A bank advisor can help you with prequalification or pre-approval. Keep in mind that many homeowners ask for less than the maximum to pay other expenses and choose to lower their monthly payments. Review your finances with these new numbers in mind and, if necessary, make final modifications to your budget and payment plan.
Start your first home buying experience the right way by looking for a real estate agent who works for you.
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