Are you thinking of buying a home in the beautiful state of Texas?
If so, then you have come to the right place. We know that buying a new home can be a scary process.
There are, in fact, a lot of things that you will need to do in order to secure your dream home.
Today, we are going to learn six steps that can put you on the right path to home ownership.
? Know Your Credit Score
If you are thinking of buying a home in Texas, then you will likely need to know your credit score (unless you’re planning to pay cash).
Your personal credit score will play a huge factor in securing a new home.
Most home mortgage companies will require you to have a credit score of at least 640. But if your credit score is not that high, there are other options.
For example, the Federal Housing Administration is often willing to work with those who have lower scores.
This is great news for those working on their credit score.
When trying to purchase a home, understand that your credit score will affect your interest rate.
The better your score, the lower your interest rate and the lower your score, the more you will end up paying in interest. This is a very important part of buying a new home.
? Know How Much You Can Afford
Before you fall in love with a home, it is a good idea to figure out how much you can afford.
Start by writing down all of your current bills including credit cards, monthly food costs, gas, and anything you pay out of pocket for.
Once you have gotten all your bills written down, subtract that amount from your monthly earnings.
The money you have left over after all your bills will help identify how much you can afford to spend on your new home.
Staying in your budget can help make life easier and you will not have to worry about struggling to make ends meet.
You should always try to avoid spending more money on a home than you can truly afford.
? How Much Do You Have Saved?
In order to buy a home in the wonderful state of Texas, you will need to have some money saved.
Most home purchases require you to put down a down payment as well as pay closing costs.
In rare occasions, the seller may pay the closing costs for you, especially if they are anxious to sell the home.
The required amount you put down on your new home can range from 3% all the way to 20% depending on the terms on the loan.
Also, being pre-approved can take some of the stress out of buying a home which is always a plus.
Your closing costs will also be about 3% of the total home purchase.
Some loans such as VA or FHA loans require you to only put down 3% for a down payment if you are a first time home buyer.
Your credit score may also play a factor in how much you will need to put down. The better your score, the less money up front you will likely need.
? Getting A Pre-Approved Loan
A great way to move forward with the home buying process is getting a pre-approval from a mortgage company.
When you are pre-approved, not only do you know how much you can spend on a new home but also you will be better prepared.
Many local housing markets in the state of Texas are very competitive. This means that you will be competing with others in order to buy a home.
There will be many offers on the table but if you have pre-approved funds, it can give you the upper hand!
?♂️ Choosing a Real Estate Agent
One of the best ways to find your perfect home is by working with a real estate agent.
He or she can help you find a home in an area you want to live with the right features.
When choosing a real estate agent, choose one who knows the local area. If they know the area, the greater the chances of finding that perfect home will be.
? Making An Offer
Once you have decided that you are highly interested in a home and you are ready to buy, you will need to make an offer. In some cases, your offer may be less than the asking price.
However, in some areas of the state, where the real estate market is highly competitive, you may have to offer a slightly higher price.
When making an offer, you will want to consider the recent market statistics to come up with a fair price.
During the offer process, keep in mind that it will take some time for homeowners to get back to you.
There will likely be other people making an offer so they will need some time to decide who to accept.
? In Conclusion
Finding your dream home may not be as hard as it seems, and working with professionals can help make the process much easier.
If you are in the market to buy real estate, why not give us a call? We would be happy to help you!