When you are buying a home, it can sometimes feel like you are in over your head, and a lot of people do not know how to go about getting ready to buy a home. It is fun to shop around and look at different homes, but if you are serious about getting into a home, it is time that you buckle down and figure out the process to buying a home. This article is going to go through a few different things that you are going to want to do when you are shopping for a home.
Real Estate Agents
There are a lot of people that will say not to use a real estate agent, but there are little to no downsides to using a real estate agent when you are the buyer. It is true that the real estate agent is going to get about 3% commission off of the sale, but you do not pay that 3%. That is paid by the seller, and so you get all the benefits of having a real estate agent practically for free. They can put you in homes that you would really like to buy and tell you about the history of the home. Using a real estate agent is a great way to look at the homes you want to buy.
You are also going to want to go to the bank or a lender and ask about being pre-qualified for a mortgage loan. This is where the bank will look at your income and your credit history, and they are going to decide how much they are willing to lend you to buy a home. Once you are pre-qualified you will know the amount of money that the bank is willing to lend you, so you can refine your home search.
You are going to want to come up with a very detailed budget of your income and your expenses. You want to remember that you are not just going to have a mortgage, but you will also have insurance, taxes, and emergencies come up all of the time. You do not want to spread yourself so thin that if you have a water heater go out, you have to take out a loan to fix it. Make sure that the home that you buy is well within your means. It is important that your new home does not put you in too great a debt.