Are You Thinking Of Buying A Home? Watch This Video!
In this new video, Jeanine Corcoran, broker and founder of Corcoran Connect, shares tips for first time home buyers. If you are thinking of buying a home, her first tip is to make sure you are pre-approved for a loan.
Isn’t it the other way around? As a matter of fact, no.
Buying a home is a milestone and it is understandable if you are keen to look at houses. But you don’t want to set yourself up for disappointment by shortlisting houses and then realizing it’s out of budget. What you want to do is get pre-approved by a lender so you know how much you can spend. You can then proceed with the home buying process, with full knowledge of your financial limits.
Jeanine’s next tip for buying a house is to get a broker or an agent that you trust. You do not need to go to every open house in your target neighborhood or check out every ‘for sale’ house you see. What you need is someone who will guide you through the process, so you don’t spend more time or money than you actually need to.
How do you know if the agent is ‘the one’? Read reviews. Or ask for recommendations. Set up a meeting to get a feel of who the agent is. Buying a house is often a lifelong investment, so you need to trust the agent you’re working with. Follow your gut, and don’t be afraid to ask questions.
More Tips For First Time Home Buyers
One of the things to avoid when buying a home is incurring more debt while waiting to get approved for a loan. That crucial period should not be spent shopping for furniture or other high-ticket items.
This is because the lender will look at your debt-to-income ratio (DTI). It is the percentage of your gross monthly income that you allot for paying debts. The goal is a low DTI ratio because it means that you have sufficient income vis-à-vis debt servicing. It makes you “more attractive” to lenders.
If you charge more to your credit card, even if you are confident that you can settle it on time, that ratio will change. It will create a different picture and it could disqualify you from a loan.
This is where the importance of an expert and a reliable agent comes in. Part of their job is to remind clients about this crucial fact. First time home buyers tend to get excitable, and this can lead to rash decisions with long-term consequences.
Your agent should be able to guide you through shopping around, not just for houses, but also for lenders. They should also give you a heads up on other expenses that you’ll need to prepare for before moving in.
We’ve Got More Tips For You!
We’ve compiled a report about the ‘dos and don’ts’ of getting a home loan, and you can get it for free! You can also schedule a consultation if you have specific home buying questions. Give us a call at 407-953-9118 or check out the website for more information.