Making the decision to purchase a home can feel overwhelming, but here are some tips to prepare you for a smooth transaction.
The first step in the home-buying process is to speak to a Mortgage Lender. A Lender is going to look at three basic categories: income, debt, and credit score. Usually, you can apply online and upload documents like tax returns, pay stubs, and supporting documentation. This process will allow the Lender to help you understand what your purchasing power is.
Make sure to ask questions about what down payment you might need. Some loan programs require $0 down, some need as low as 3.5% down and others need at least 20% down.
You can establish an estimated monthly budget with the Lender. Oftentimes, you can get pre-qualified for much more than you want to spend monthly. Your Lender will be able to help you translate between the purchase price of a home and what the monthly payment will be.
Once you have all the details settled with your lender, it is time to go home shopping! There are costs associated with a home purchase throughout the transaction. Home inspections, appraisal, closing costs, and the lender's origination fee are some of the costs that you will encounter once you find your dream home and go under contract!
A seasoned Realtor will be able to help you navigate each of those hurdles and get you to the closing table!
Article by Alexis J. Hassley 505-485-2881; Qualifying Broker at Equinox Realty NM
Photography by Alexis Hassley
Originally published in Albuquerque City Lifestyle