4 Steps to Take Before You Buy Your First Family Home
The excitement you feel when you begin shopping for a new family home will have you wishing that you could hire a moving truck the same day. When it comes to buying a house, this long and often daunting process takes a while so that both banks and buyers can be sure that they’re making the right decision.
You may already have a specific list of homes for sale that you’re prepared to make an offer on, but getting your family into the right home means that you’re going to have to work hard to reach your goal. From getting the best possible mortgage rate to negotiating a better sale price, you really have to weigh all of your options before you go under contract.
If you want to move your family into a home that you are going to love for the rest of your life, these four steps will help you to find a perfect match.
1. Increase Your Credit Score
By now, you’ve undoubtedly heard the same advice over and over again - work on your credit. For those who already have a decent credit rating, that will enable them to qualify for a home loan, but most don’t truly understand the value of getting a better interest rate until they make their first mortgage payment. Bumping up your credit score by as little as 50 to 100 points can save you a lot in interest payments, and it can also help you to qualify for a larger home loan. Improving your credit rating is as simple as taking a look at the hard copies of your credit reports. Be sure to dispute any and all late payments, unknown accounts and delinquencies that you believe are inaccurate to see a major difference in your credit scores.
2. Put Extra Money in the Bank
In anticipation of finding the perfect family home, you’re going to need a pretty healthy down payment on hand so that you can make an immediate offer. You may have a habit of storing your extra cash in your mattress, but mortgage companies are going to want to see your money being kept safe in a bank account. Keeping your money in the bank makes mortgage companies feel more comfortable when reviewing mortgage loan applications because you look more responsible when you are able to increase your savings month by month.
3. Look at All Homes for Sale
You may know that you want a three bedroom, two bathroom ranch styled home, on a plot with plenty of trees, but that doesn’t mean that you shouldn’t look at other properties as well. If you learn of a home that is within your price range, go check it out. Improvements to properties can be made over time, and you can’t accurately judge a home for sale just based on pictures posted on the internet. During your new home search, you may even run across a property that you were initially not interested in, and find it to be a perfect fit as soon as you go inside for a tour.
4. Start Decluttering Sooner Than Later
Don’t get so excited about buying a new house that you forget about where you live now. Taking the time to determine what you will be taking to your newly purchased home versus what you can get rid of now will make moving more pleasant. Get rid of more of your old stuff and you’ll also give yourself a pretty convenient reason to buy new furnishings for your new pad.
At first, you may run into a lot of different houses for sale that feel right, that is, until you learn something about the home’s history that leaves you looking for the nearest exit. This is why it simply makes sense to take your time and keep searching until you really do find a house that you can’t live without. Stay organized, keep your goals firmly planted in the front of your mind and be frugal in order to afford the home of your family’s dreams.