How do you start the process of buying a home? Are you considering purchasing a home but not sure where to start? In this video, I discuss the steps to buying your first home as well as the first step to buying a home.
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What is the first step when buying a home?
In my opinion, I believe you should start the home buying process by determining your monthly budget. This may sound like a really simple step but it’s probably the most overlooked step in the entire process of buying a house.
By monthly budget, I mean figuring out how much you can afford to pay each month with regards to your PITI (principal, interest, taxes and insurance) as well as HOA (homeowners association) dues if you have one.
Once you have determined your monthly budget, the next step is to figure out how much money you have for a down payment. Are you receiving money from parents? Either way, just get an idea of how much money you have to put down towards your purchase as this will be a question that comes up in the next step.
The next step is meeting with a mortgage professional (I recommend a mortgage broker) in order to start the pre-approval process. Getting pre-approved is a relatively simple process but does require some leg work on your end. That leg works consists of gathering the necessary documentation the lender will need like Pay Stubs, Tax Returns, Checking/Savings Account Statements, etc….. In addition to those documents, the lender will require you to fill out a loan application and will run your credit in order to determine how much home you can afford to purchase.
Once you get pre-approved then you are in a position to meet with a Realtor and start looking at homes. Looking at homes whether in person or online before starting the pre-approval process is really starting the process backwards. It’s always a good idea to get pre approved for a mortgage first then look at homes so you know that you are looking in the correct price range and not setting yourself up for disappointment.
Step by Step in buying a house first time
1. Determine your budget
2. Determine your down payment
3. Get Pre-Approved with a Mortgage Professional
4. Meet with a Realtor
5. Start looking at homes
6. Make an offer
Are you looking to purchase a home but not sure where to start? Are you wondering what is the first step in buying a home? If this video doesn’t answer all your questions, please comment below or contact me directly as I’d love the opportunity to help.
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