Real estate The First 3 Steps to Home Buying

How to determine which home is right for you, find that home, hire a real estate agent, find a lender, get a credit report, choose a loan, write an offer, etc. There are so many step that is included in the home-buying process, and if you’re a newbie in this field, you would probably commit a lot of mistakes that would most likely lead to foreclosures in the future. So, take your time to read and digest the initial steps in buying your new house.


1. Research and Education. Read through the various steps listed in the article to get an idea of how the purchasing process works. Spend some time learning the terminology associated with the home buying process especially the mortgage terms, since that is where first-time buyers often get confused. Be knowledgeable with the various types of mortgages available to you. Instead of just learning the names of the various mortgages, you should find out how they work.


2. Establish Your Budget. Establish a home-buying budget for yourself. This should happen before you start talking to lenders. This is one of the steps to purchasing a home that many first-time buyers skip altogether. The primary cause of mortgage foreclosure is when people spend too much money on their home purchase, and it usually happens because they’ve skipped this all-important step to purchasing a house.


3. Be Pre-Approved for a Mortgage Loan. Pre-approval is a process where the lender reviews your finances and tells you how much you can borrow. Never get a mortgage that is too big for you. Start with your own budget first, and then get pre-approved by a lender. This is another key step to purchasing a home; some real estate agents won’t even work with buyers until they’ve been pre-approved