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dimanche 13 avril 2014

What To Do Before Buying Real Estate

By Pammy McGrath


If you have been spending your weekends browsing open houses and can't wait to buy a new home, this is an exciting time for you. On the other hand, it's a huge purchase and the entire home-buying process can be overwhelming. For those ready to look for a home to buy, consider completing some initial work prior to getting out there and looking at homes.

Many financial companies advertise their lending services and talk about loan pre-approval or pre-qualifying for a loan. Pre-approval and pre-qualifying are not one and the same. Many lenders offer quick pre-qualifying services via email or phone calls. Pre-qualifying gives you a general idea of what you might be able to afford, but it is never a guarantee that you actually can obtain a specific mortgage loan amount. Still, it usually is a quick and free process that can help you think about your potential home buying budget. When you get truly serious, you need to get a loan pre-approval.

The pre-approval process is longer and includes actually sitting down with a lender and sharing your credit scores, your income, your expenses and other financial information. You will pay a fee for a pre-approval application, as well. However, being pre-approved for a loan makes the buying process easier because you don't waste time looking at homes that you cannot afford and once you find a home, a pre-qualified buyer looks much more attractive to a seller. So if a bidding war ensues and you are the only pre-qualified buyer, this gives you the advantage.

If possible, you actually need to get ready to buy months before you start searching for a home or even talk to a lender. Begin by saving up for the down payment and costs associated with closing escrow. Even if you are selling a house to make your down payment for the next house, you still should be saving for extra expenses such as repairs or updates to the new home. Do not make large purchases or open new credit card accounts in the months leading up to a home purchase. The less debt you have, the better you look to a lender.

Before you meet with your realtor you also need to know what you need and want out of the new home. While it helps to be realistic and keep an open mind, your realtor needs to know essential information such as the area in which you want to live, the school district you must be in, the size of home you need and the style of home you prefer. Be as specific as possible and list a few of the biggest must-have items at the top of your list. If you have some deal breakers such as a home too far away from work or on a busy street, be sure to put those down as well.

When it comes to a realtor, choose someone with experience, particularly in the areas in which you really want to live. If you are hoping to buy a house in the scenic Texas Hill Country, consider contacting Nixon Real Estate. For nearly 40 years, the realtors at this Fredericksburg real estate firm have been find Kerrville real estate, Fredericksburg homes for sale as well as San Antonio real estate and homes throughout Hill Country.




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