Buying a home is an exciting process. However, it can be a tricky and lengthy process if you are unsure of who to call or what to do first. Don’t worry, we’ve put together a quick guide that will set you well on your way to buying a home.
1. What are the steps to buying a home?
- Before you begin making calls, it’s a good idea to decide how much you’re willing to spend on a home. From there, you should take a look at your credit score (don’t worry we’ll discuss those details in a minute). Once you have an idea of your financial situation, you should get in touch with a lender.
- A lender will help you accurately determine what you can afford and what your options are. If you do this first, it will streamline the process once you begin looking for a home.
- That brings us to our next step – finding an agent. From this point forward your agent will guide you through the process. You’ll spend afternoons browsing homes and making decisions that lead you to your new front door.
- Another vital resource you can utilize is a title company. Title companies can serve as a neutral third party to gather information, prepare documents, and hold and disburse funds. If you have any questions or concerns give us a call at 225.744.4241! We’re happy to help you!
2. What kind of credit score do I need?
The key here is what kind of credit score YOU need. There are hundreds of articles out there that say you need a certain score… The only problem is, there are far more factors that affect the home buying process than just your credit score. As a general rule of thumb, the higher the better. However, that doesn’t mean that someone with a 580 credit score can’t buy a house and someone with a 700 credit score can. It just depends on each persons specific, financial situation. The best way to determine what kind of credit score YOU need to purchase a home is to talk with your lender.
3. How much does a real estate agent cost?
Generally, the seller is responsible for paying the agent. Of course there are certain circumstances in which this may not be the case, but as a general rule you’re off the hook as the buyer.
4. How much money do I need for a down payment?
Similar to your credit score, the key here is how much YOU need for a down payment. Again, there are copious articles suggesting that you need a certain amount to put down. Again, no article can give a specific amount because your down payment is specific to your financial situation. For an accurate down payment amount, the best thing to do is contact your lender.
5. Where can I get a loan?
There are quite a few different places you can get a loan. Things you must take into consideration are what kind of loan you’re looking to attain and what your financial situation is. If you don’t know what kind of loan you need, that’s okay – most people don’t. A good place to start would be your bank or credit union. If they can’t offer you what you’re looking for they can certainly point you in the right direction.