How To Get A House
Assess Your Financial Situation
- Check Your Credit Score: Lenders use your credit score to determine your eligibility and the interest rate for your mortgage amount . A higher score generally means better terms.
- Review Your Budget: Know your monthly income, expenses, and how much you can comfortably afford for a down payment and monthly mortgage payments. Take the Surprise out of it.
Determine Your Mortgage Needs
- Decide on the Loan Type: Fixed-rate or adjustable-rate mortgage? FHA, VA, or conventional loan? (FHA maybe a starting point in the steps to buy a house, however beware of PMI as you may want to Refinance at a later date and could effect your mortgage amount.)
- Choose a Loan Term: Common terms are 15 or 30 years. Shorter terms mean higher payments but less total interest.
- Look Into a Lease to Own agreement.
Get Pre-Approved
- Shop Around for Lenders: Compare interest rates, fees, and customer reviews. ( If Refinancing try different mortgage amount's as it can effect lender's rates.)
- Gather Documents: Commonly required documents include:
- Recent pay stubs
- Tax returns (last 2 years)
- W-2s or 1099s
- Bank statements (normally two months)
- Proof of assets (e.g., investments not typical)
- ID and Social Security number (You Dont Have A Quote Until You Pull Credit, Loan Estimate Is King.)
- Submit Application: Pre-approval involves a soft credit check and gives you a conditional loan amount. This helps you know your budget while house shopping.
Calculate Your Down Payment and Savings
- Standard Amounts: Typically 3%–20% of the home price.
- Save for Additional Costs: Include closing costs (2%-5% of the purchase price), home inspections, and moving expenses. (Some VA Loans Can Go Over The Home Value To Help, But The Mortgage Amount Would Cause A Loan To Value Over 100% And Can Be Hard To Find A Lender Willing. Used For Closing Cost Normally.)
Start Shopping for a Home
Once you’re pre-approved, you’ll know how much you can afford. You can now work with a real estate agent to find a home within your with in your mortgage amount.
Share The News With Your Loved Ones
Be sure to share the wealth of knowledge you have gathered and help those who may be lost on how to get a house, help walk them through the steps to buy a house.