Few events are as exciting as purchasing a house for the first time. But since you’re unfamiliar with the process, it can also be a bit stressful at times. The real estate professionals at EXIT Realty Homefront in Zimmerman, MN, want to make the process easier. They share their top tips to help make the process a little smoother.
Real Estate Agent’s Top Tips for First-Time Homebuyers
Many people think prequalification and preapproval letters are the same when they are not. A prequalification letter states what the lender says you qualify for based on a high-level review of your financial information. It’s not a guarantee you will get a loan. A preapproval letter, on the other hand, shows you are already approved for a loan. It is beneficial because it lets sellers know you’re serious about buying the house. A seller is more likely to accept an offer if they see you have been approved and can close in a reasonable amount of time.
Plan for Closing Costs & After Move-In Expenses
There are more expenses to consider than the down payment. Closing costs, such as lenders fees, title fees, and points, are all paid for out of pocket. Also, account for moving expenses, new furniture, appliances, painting, and upgrades you plan to make.
Manage Your Credit
Before buying a house, get a copy of your credit report. If there are derogatory items on your report, get those taken care of before looking for a house. Also, if your credit score is lower than you expected, pay off some of your debt. Don’t apply for any new credit while you are shopping for a home. That extra debt could lower your score or push your debt-to-income ratio too high to qualify for a mortgage.
Find a Real Estate Agent
Don’t handle the homebuying process on your own. Find an experienced real estate agent to make it easier for you. They will help you by finding homes that meet your criteria, recommending a fair offer amount, and negotiating with the seller. A professional will also review all documents with you, explaining each step of the process and answering your questions.
Buying a house is an enjoyable process if you take a few steps to prepare for the journey. If you want to buy a home in the Zimmerman area, turn to EXIT Realty Homestead. This experienced team will walk you through the entire process and help you find your dream home. Call them at (763) 856-0195 to schedule an appointment with one of their agents, and view their listings on their website.