Starting the home-buying process
Updated: May 4, 2018
Hello, my name is Andre Notice, licensed Texas Realtor in the city of Houston. Because real estate is the biggest purchase one can make, buying a home is one of the biggest decisions in life you can make. Which is why two of the most frequently asked questions I get are, “How soon should I start the buying process?” and “How do I even begin?” These are both great questions that should be asked to make sure you’re starting the process on the right foot and not “jumping the gun” and doing something that may not be relevant or in the right order. Based on my personal experience, people that would like to start the buying process tend to start by either building credit, saving money or even just looking at homes online. These are all very vital steps to the process, but prior to doing even this, it is my personal opinion that I suggest speaking with a mortgage lender FIRST! This step should be before anything else. Regardless if you’re thinking about buying within the next two months or two years, starting here will allow you to be in a position faster than anything else.
Now of course you may be thinking, “Why start here? I’m not ready yet.” Well, that is the overall point. Most people are usually MORE ready than they anticipate, and because this is true, when they start doing other steps to “get ready” without the guidance and direction as to how, it’s very possible to do more harm than good. Having good credit for a car isn’t the same as for a home loan. A lender will be able to guide you through what (specifically) needs to be done to build credit for this particular loan. If you do not know of any lenders personally, ask your realtor that you know to introduce you to a lender that he/she has worked with and that have closed deals for them in the past. This beginning step is VITAL for initiating the buying process. To determine where you are, the lender will be looking at your income, stability, rental history, and your debt to income.
Based on where you are currently, the lender will let you know your current situation and let you know one of two things:
1) You are currently ready to be pre-approved for a home!!! 2) You are not quite ready to be pre-approved for a loan
1) Your pre-approved Congrats on your pre-approval! With this knowledge, you now know that you have the means to purchase a home at the specific dollar amount the lender gives you.
Now it’s important to know that your approval amount is generally dictated by your income and your credit generally dictates you’re interest rate. From here you can contact your agent so that they can further inform you as to the next step in your home buying process
2) You are not yet ready Congrats! This is also awesome news because you broke through the fear of taking the first step and now you know (specifically) where you are and where you need to be. From here, your next step is determined by what the lender lets you know what needs to be done and may even have some contacts to assist you in getting there. If not, your realtor may.
So there you have it. The first step to the home buying process is to contact a reputable lender. If you’ve enjoyed this free info, please leave a comment. You can also follow this link to obtain a FREE DOWNLOADABLE GUIDELINES of What Not to Do After You’re Approved for your Loan: Andre' Notice, REALTOR® - Houston, TX 77084