If you’re thinking about buying a new home, you might be unsure what to do. You might be ready to jump headfirst into looking at homes, but you’ll find the process takes longer if you do that. Instead, here are some steps to take before you buy a home that will help ensure you get the home of your dreams with a mortgage you’re happy with.
Pay Down Your Debt
While taking the time to pay down your debt doesn’t seem like a fun idea, you’ll be glad you did when you’re ready to buy a house. Your credit score and the amount of debt you have will directly affect how much you can be approved for in a mortgage and what interest rate you will get. Even a small bump in an interest rate can mean that you’ll be paying tens of thousands of dollars extra over the life of your loan.
When paying down your debt, the fastest way is often the snowball method. You pay the smallest bill off first and then apply what you would have paid to that bill to the next, plus what you owe for that one. Then, you continue to do that until your debt is paid in full.
Once your debt is paid down, you need to get preapproved for your mortgage. Many realtors won’t show you homes until they have your preapproval, so it’s essential to get it before you start looking at homes. The loan processors Loganville GA at your mortgage company will ask for proof of your financials, they’ll need to know about all of your debts, and they’ll also need your banking records. Having everything ready when you go in for the preapproval will help speed the process up.
Find a Realtor
Before choosing a realtor to work with, make sure you meet them and hold a small interview. You want to choose someone you feel comfortable with and doesn’t come across as pushy or too forceful. You’ll be working closely together until you find a home to buy, so you don’t want to choose the first one you come across.