When it comes to buying a home, there are some secrets that you should know that can help you secure the right home. Here is what you need to know.
1. Keep Your Money Stable
First, if you know you want to purchase a home, you need to keep your money stable before applying for a lender. You shouldn't make any major money moves about half a year before you want to purchase a home. That means not taking out any new credit cards, a new car loan, or taking on anything big that will increase your debt. It is okay to pay down your debt, but you don't want to amass new debt. This can look like you are financially irresponsible to a lender, and you want to look like a responsible lending candidate.
2. Always Get Pre-Approved
Second, you need to understand that being pre-qualified for a home loan is not going to help you when you put in an offer on a house. It is easy to get pre-qualified for a loan, as all that is involved is knowing your name and most likely your income. Your credit score and financial history aren't really examined at all. Many banks send out pre-qualified letters to individuals just to get people into the bank.
What you need to put an offer in on a home is to be pre-approved for a mortgage. This is a much more involved process and requires that you choose a lender and share detailed financial information with them. The pre-approval process can take some time to go through, so once you are ready to start the home buying process, you will want to get pre-approved first.
3. Don't Worry Too Much About the Market
Finally, don't worry too much about the market. Spring and summer are indeed the biggest times of the year to sell and buy homes, but there are always homes on the market. Start looking for a house when you are in a position to purchase a home and make an offer when you find one you want to purchase. The market will always be changing, so don't try to play it too hard. Just focus on finding a home that you like.
When it comes to buying a home, don't increase your debt in the months leading to you wanting to purchase a home. Pay down debt, but otherwise, keep your credit antiquity stable. Get pre-approved from a lender, as being pre-qualified isn't the only thing that will help you buy a home. Finally, don't worry too much about what is happening in the overall real estate market; look for a house when you are ready. For more information regarding homes for sale, contact a real estate agent.