This article presents you with six steps to keep in mind while buying a home.

First things first! You need to be sure that your credit report is up-to-date and free from anything that could prevent you from getting approval from your lender.

You may think you can afford a home at $300,000 when in reality, you’ll be approved for $250,000.

Many factors are considered for loan approval from your lender, including: your monthly income, how many years you’ve been employed at your current employer, your assets, and other things.


There are still a lot of upfront costs after you qualify for a mortgage. You will need money for a down payment, which can run up to 20% of the total price of the new home. Also, you’ll need cash on hand to pay for closing costs.

Adding to your savings is the only way to go to prepare for buying a home.

You’ll need to plan and make goals for 1-3 years typically. You’ll add to your savings as you go along with the knowledge that it’s going toward your new house. If you are saving for a year, then make sure to keep everything liquid and not tied up in any long-term investments.


Finding the right real estate agent for your first home purchase if very important. You need to find someone that you can trust and who will consider your entire financial snapshot, your needs, and who is very familiar with market conditions.

Additionally, you will need to sign with an agent before walking into an open house. This is to protect yourself if negotiations begin to take place on the spot. You want the best deal possible, so you need to go with a professional who can get that for you.


After you have your finances ready and in order, make sure to double-check your credit report to make sure it’s current. Then you can get a pre-approved loan.

Getting a pre-approved home loan is essential for new home buyers because most owners and realtors will want potential buyers who are pre-approved. It will be less headache for them and for you.

How do you qualify for a pre-approved mortgage? You will need a good credit history, which includes paying your bills on time. You will also need a debt-to-income ratio of at least 43%. Most lenders these days prefer that your housing expenses come to about 30% of your monthly gross income.

So, apply for your pre-approved mortgage and then begin looking for your first home.


If it’s a buyers’ market, then most buyers will place a bid below the asking price of the home. Most real estate professionals’ advice is to go no lower than 10%. You can also guarantee a yes and a quick closing by accepting the house in its present state rather than demanding repairs. Sometimes, however, the seller and their agent may ask for your highest offer. Of course, don’t go too high if you’re not completely sure.

Also, in the end, a buyer can agree to pay the seller’s full asking price without going through the bartering process. If you want the house and you know it’s the one, then go with the full asking price because there’s always going to be someone else coming after you who will pay it.


Once your offer is accepted, the contract writing process begins. Also, down payments are made and building inspection contingency dates are set. You’ll be able to rely on your trusted real estate agent to handle things in a professional way so you know what’s happening at every step.

On the day of closing, you’ll have a final walk-through of the property, and then the formal process of closing begins. This is where all parties involved in the sale will complete all paperwork, the title is transferred to you, the keys are handed over, and payment is given to the seller.

A title representative may be on hand to subtract funds from the sale to pay off the existing mortgage and other remaining costs. Lastly, any loan papers, deeds, and other paperwork will be filed with the local property record office.

Your real estate agent is the best source of information about the local community and real estate topics. Give The Wilson Group a call today at 954-818-6092 to learn more about local areas, discuss selling a house, or tour available homes for sale.

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