Posted on: 19 June 2017
Before you rush out and buy a house, it's important for you to make sure you are ready for this event. A house is a big purchase, and you should make sure you fully understand the responsibilities you will inherit once you sign the loan documents and close on the house. Here are several important steps you should take before you buy a house, and how these steps will help you prepare for this major purchase.
Prepare Your Finances
There are three important parts of your finances you will need to examine as you prepare to start looking for homes for sale:
- Your income and debts – Lenders will always analyze a person's income and debts when determining whether to issue a loan or not. You should make sure you have a secure job, and that you have been there for at least two years. You should make sure you have enough income to pay a house payment, and that you have very little debt.
- The amount of money you have for a down payment – Lenders also typically require down payments when issuing loans. Do you have enough money saved up to buy a house at this time?
- Your credit – The third part of your finances that you should examine is your credit score. Having bad credit will not automatically disqualify you from getting approved for a loan, but it may cause this process to be more difficult.
If you feel that your finances are in order, you should visit a bank to find out what to do next.
Get Pre-Approved From A Lender
The bank is likely to recommend going through the pre-approval process to make sure you qualify for a loan. If you don't qualify, there is no point in shopping for a house. The pre-approval process will require filling out an application and submitting a lot of important financial documents and details. It will also require a credit check, and possibly an income verification check.
Carefully Think About The Features You Want Most In A House
If you get pre-approved for a loan, the next step you should take is creating a list of all the features that are most important to you in a house. Take your time as you do this to make sure you have thought it through thoroughly. Once you have, you will be ready to look for a house to buy.
After spending time completing these three steps, you will know if you are ready to buy a house right now. If so, you can begin shopping around at homes for sale in your area.Share