Buying A Home....Where Do I Start?
Whether you are a first time buyer or a veteran at buying houses the first step is to decide how much house you can afford and to find a lender that will give you the money. Buyers that have already met with lenders and have been pre-approved are much stronger candidates to sellers than some average Joe that walks up and says, "Hey, I wanna buy your house." Also nothing is worse than looking at a home and falling in love with it only to discover that the trip to Las Vegas you put on the credit card has affected your income to debt ratios and the bank will not loan you that much money.
The following link takes you to an article titled "7 Steps to Take Before You Buy a Home." http://buyandsell.houselogic.com/articles/7-steps-take-you-buy-home/
Step 1 refers back to financing and finding out how much home you can afford. Keep in mind that the payment would include Principle, Interest, Taxes and Insurance.
Step 4 refers to down payment. Depending on the what loan you choose and your credit score, your down payment will vary. I have one lender who can do 100% financing. In order to be approved for that loan you have to have a high credit score. Some first time buyer programs will give a grant to assist with down payment and closing costs. Repeat buyers who have substantial equity in their current home may have a large enough down payment that they won't have to worry about mortgage insurance. Checking with 2 or 3 lenders to figure out the best loan for you is strongly reccommended.
Step 7 really should be Step 1 in my opinion. REALTORS want to know they are working with qualified buyers. Sellers spend lots of time getting their homes ready for showings and then have to give up their time to vacate for an hour. They are under the impression that everyone coming through their home is in a position to buy it. As a buyer, you don't want to look at homes you can't afford because the homes you can afford will never measure up then.
REALTOR® - Licensed in the state of Iowa