The idea of owning a home is exciting, and it’s one of the most important investment decisions to be made. Walking into the home buying process without a bit of knowledge can be intimidating. Fortunately, we put together some helpful steps to give you a bit of insight before you begin searching for your dream home.

💯 Know Your Credit Score

The amount needed to purchase a home might be way above what you can afford. In most cases, a good home will require you make a substantial investment. For this reason, it might be necessary to acquire credit from a home mortgage lender. Knowing your credit score is the first step in making this easier.

Get a copy of your credit report from TransUnion, Experian, and Equifax by visiting. Due to federal law, you are allowed one free credit report from each agency annually. It’s important to check all three because each one may have different information and scores. Report any errors and make plans to repay delinquent accounts.

💰 The Importance of Saving Money

The role played by savings in the home buying process cannot be underestimated. It’s recommended that you have 20 percent of the selling price of a home on hand for a down payment when securing a home mortgage loan. Of course, a high down payment may result in lower monthly payments, better interest rates, and a shorter term.

Remember to put aside savings for other fees associated with the home buying process. You may be required to pay some or all of the closing costs. Don’t forget the addition of moving expenses, as well.

👥 Finding the Right Real Estate Agent

Having a professional real estate agent on your team can provide you with peace of mind. They have the knowledge and experience you need on your side to have a smooth transaction. Find a real estate agent who listens to your unique needs, is committed to communicating at a high level, and is skilled as a negotiator.

Set up a time to speak with the potential real estate agent to discuss their plans for helping you locate the perfect home. You’ll be spending a lot of time working with this person, so it’s important to make sure you get along well and understand each other.

✔️ Get Pre-Approved for a Home Mortgage

Getting a pre-approval is essential for the home buying process. You don’t have to waste a lot of time negotiating for deals only to realize later that you can’t get a mortgage. There’s nothing worse than finding the perfect home but finding out that it’s out of your price range. A pre-approval gives you a target price range.

In a bidding war with another buyer, a pre-approval may give you the edge. This approval lets a seller know that you can follow through with the sale if they accept your offer. This may put you ahead of someone else who does not have this advantage.

✍️ Placing the Right Offer

Your real estate agent will advise you when it comes to placing an offer. You want to offer a price that is fair, but you may want to increase your offer based on your desire and the competition for the property. Your real estate agent will help you create an offer that catches the eye of the seller.

📝 What Happens after the Offer is accepted?

Acceptance of your offer can cause much joy and excitement. At this point, you are close to owning your dream home. However, the acceptance kick-starts a series of other closing processes. Request your bank to process your mortgage immediately after your offer is accepted. Inspections and appraisals will take place, as ordered by the lender. Your real estate agent will keep you informed every step of the way and be there with you on closing day to explain any paperwork that needs to be signed.

Your real estate agent is the best source of information about the local community and real estate topics. Give The Cappozi Team a call today at 716-578-5444 to learn more about local areas, discuss selling a house, or tour available homes for sale.

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