Are you in the market to buy house MN? Buying a house requires a lot of time and effort but knowing these 5 steps can help make the buying process simple and more manageable:
Start with your credit score. You may check with any of the 3 major credit agencies: Experian, Equifax, or TransUnion. Your credit score will tell lenders if you are habitually late with payments of if you have run into serious credit problems in the past.
A low credit score can hurt your chances of getting a good interest rate or getting financing to buy house MN. Get a copy of your credit reports and know your score. There could be errors and it could take months to resolve them. If your scores are accurate but low, be prepared to explain them to the loan officer.
Next, figure out how much house you can afford. Start with a home affordability calculator. You can also get a more accurate figure by asking to be pre-approved by a lender who will check your income, debt and credit to buy home MN.
A good rule of thumb is to aim for a house that’s 2.5 times your gross annual salary. However, if you have a lot of expenses like alimony, credit card debt or school loans, you may need to set your sights lower. Your monthly home payment should also not exceed 36% of your gross monthly income. Your down payment can also determine the house you can afford.
You will now need to come up with cash for your down payment and closing costs to buy house MN. Generally, lenders like to see 20% of the home price as down payment. If you’re willing to put down more that is also good. If you can’t come up with the cash, you may need to research on loan programs specific to your situation. For example, first time homebuyer program.
After the down payment, you also have to make sure that you have enough funds to cover fees and closing costs. This could include appraisal fees, loan fees, attorney fees, inspection fees and cost of a title search.
According to real estate website Zillow, home buyers should prepare 2 to 5% of the asking price to pay for the closing costs.
Before you start to buy house MN, you need to find out how much you can actually spend. The best way to do this is to prequalify for a mortgage. To get pre-approval you need to submit some financial documents to your lender. Financial documentation like income, savings and investments will be reviewed by the lender to find out how much they will be able to let you borrow.
Once they have reviewed your information, they will be able to tell you the price range of the homes you can buy house MN.
Now to the most important part of buy house MN. Start with touring houses in your price range. During this part, you will probably see a lot of houses so you should take notes so that you can remember which properties match what you are looking for. Make sure you know all the details like the condition of the plumbing and electrical systems; test the windows and doors if they open properly, if the property is near schools or shopping centers, restaurants and other places that interest you, street traffic and other important issues regarding the house and location.
Once you find the right house, you’re ready to buy house MN and make an offer. Work with a local real estate agent so that you can negotiate a fair offer that is comparable to the value of other homes in the neighborhood.
It may take a while before you will be able to buy home MN. Just make sure to do your research and to work with a good real estate agent in order to make it a positive and less stressful experience. For your local Twin Cities knowledgeable and premier realtor, learn more here.