Buying a first home is an exciting life event, but going through the steps involved can be stressful. Here is some basic advice for first-time buyers about how to buy a house, get preapproved for a loan, and handle the purchase.
Improve and Obtain Credit Scores Before House Shopping
An individual's credit score makes a big difference in the kind of interest rate they get on a loan. If a couple buys a house together, the lowest credit score of the two is used. Credit should be used responsibly well in advance of buying a first house to maximize credit scores.
The three major credit reporting bureaus – Equifax, Experian, and TransUnion – are obligated to give people one free credit report a year. The free report, however, will only list a person's open credit accounts. For the actual numerical score, a fee of around $40 is required.
Browse Homes with Online Realty Websites
Most reputable real estate agents have websites, many of which are great resources for home buyers. Before the Internet, MLS listings were published in hefty books available through real estate agents. Now, it's easy to search houses for sale in many different towns and cities directly from a home computer.
Depending on the site, guests may be required to sign in to view listings. Some allow complete access to visitors, some only let registered users browse, and others give limited information on homes but offer extensive information to signed-in viewers.
First Time Home Buyers Need a Real Estate Agent
It's advisable for any home buyer to seek the help of a qualified realtor, but this is especially true for first-time home buying. A real estate agent can help a person get appointments to see houses, negotiate with sellers, draft offers and purchase agreements, and recommend a good inspector.
Especially when buying a house in a short amount of time – for instance, during a seven-day period while visiting from another state – it's important to work with a good real estate agent. Just make sure to find someone who meets the criteria for a good realtor.
First Time Home Buyer Loans - Get Pre-Approved
Home loans for first time buyers vary substantially, so it really pays to shop around. It's a good idea to contact a variety of banks (within a small time frame to preserve a good credit score) and shop around for the best first time home buyer financing.
Before going house hunting, it's best to obtain a pre-approval letter from the bank. An offer on a house is more likely to be accepted when it is accompanied by a pre-approval letter. It shows sellers serious intent to purchase, and it reassures them of a buyer's ability to get financing for the house.
Buying a house is an overwhelming process for the beginner, but it is manageable when broken up into small steps. When purchasing a first home becomes a real possibility, people should educate themselves by obtaining their credit scores, browsing online, finding a realtor, and getting pre-approved for a mortgage.
Related articles on first-time homebuying:
Steps to Purchasing a Home – complete homebuyer checklist from shopping for homes to closing the sale.
What to Look for When Buying a House – how to effectively evaluate homes and organize information to make an informed decision when it comes to making an offer.
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Jenny Evans - Jenny Evans is a freelance writer and editor specializing in parenting and the family. She is also the Mormonism Topic Editor for ...
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