What You Need to Do Before Your Home Search

Uncategorized
November 18, 2021

Before you can begin the search for your dream home, there are a few steps you will need to take to ensure you are ready. Buying a home can be stressful, and the shifting market did not make it any easier for the average buyer. While it may feel overwhelming to search for a home in this day and age, there are a few things to do beforehand that can make the process easier on you:

1. Check Your Credit: Before you can allow a lender to pull your score, you should do a report of your own. An accurate credit report can be found at any one of the major credit bureaus, including:

TransUnion
Equifax
Experian

The higher your credit score is, the likelier it will be that you will receive a lower interest rate.

2. Figure Out Your Budget: Before you can search for a home, your budget needs to be established. You will need to consider your annual income as well as your debt ratio and projected down payment. These factors can help determine what you can afford for a mortgage payment each month.
3. Get A Pre-Approval Letter: If you are like most buyers, you will not be paying in cash. If you are not you will need a pre-approval letter from a lender that can verify your budget. In this letter, the lender will calculate your debt-to-income ratio and assess how stable your financial situation is. This letter can show a seller that you are serious about purchasing a home and is the biggest step towards starting your home search!