At ASCU, we know the home buying process can be frustrating. There are lots of new terms to understand and documents to go through. Before jumping in to the fun part of house hunting, follow the steps below for a smoother buying process.
1. If you are a first time home buyer, chances are you are struggling with the vocabulary of the trade. There are lots of new terms to understand revolving around home buying. For instance do you want a fixed rate mortgage? What about the terms principle, equity, escrow, and earnest money? Take some time to familiarize yourself with the vocabulary of the trade to better understand your buying options.
2. Calculate how much you can afford. There are some costs associated with buying a home that you will need to understand before figuring out what you can afford. Take the time to create a budget based on what you need to be happy and compare that with your monthly income. Make sure you have money to contribute to a monthly maintenance fund for the home. When repairs arise down the line, you will be ready.
3. Check your credit rating. You are entitled to one free credit report every twelve months. If something on the report does not look accurate, make sure you address the discrepancy before you apply for your loan.
4. Get a loan pre-approval letter from ASCU. You are almost ready to scout out your new home! Make sure you get a pre-approval letter from ASCU so you know how much you will qualify for. Make sure you supply accurate information for the best possible outcome.
5. Research the homes in your area to find out what is available, where it is available and at what cost. This includes doing research on school systems in the various neighborhoods you are looking at along with other services and conveniences you may want to be close by.
6. Find a Real Estate Agent and go house hunting! Using a licensed real estate agent can help you navigate through the process of finding the best home within your budget and your list of “must-haves”. Check around and get a personalized recommendation.
7. Once you’ve found that perfect home, you’ll need to get final approval. This generally is not a problem if you’ve provided true and accurate information for your pre-approval letter and you’ve checked your credit history before looking for that dream home.
8. Close on your loan and Move In!
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