Sound financial standing is not always an accurate indication of people’s readiness to purchase their first home. Buying a house involves a meticulous process starting from learning about suitable mortgage programs to finding an ideal location. First-time home buyers, no matter whether they are in Texas or another state, need to keep several key aspects in mind to materialize their home buying dream without having to face any hassles. To help, in this post, we list four major aspects borrowers need to consider when planning to apply for a mortgage. Let’s take a look.
1. Getting a Pre-approval
Getting pre-approved is one of the major requisites for homebuyers to fulfill. It is both time-consuming and challenging as lenders verify various documents including your credit report to provide a good faith estimate (GFE) during this process. Unlike pre-qualification, pre-approval is mandatory and requires a fee. Though, the process helps first-time homebuyers narrow down their property search and learn about how much mortgage loan lenders are willing to provide them.
2. Finding an Experienced Realtor
Taking the help of a realtor makes sense for most first-time homebuyers, as they can help both in obtaining ideal mortgage plans as well as finding properties in a competitive price range in your preferred location. Seeking an experienced realtor or banking officer, however, may take a little research. Begin by asking your friends or family members if they have worked with an experienced realtor. You may also check with lending institutions. When you find one, though, remember to check their track record.
3. Learning about Mortgage Options
If you are a veteran or active member of the armed forces in the US, you may be already familiar with the VA loan program and its benefits. However, there are various other loan programs that first home buyers should learn about to find their best bet. The veterans land loans program in Texas and other states, for example, provides financial support to people, who want to borrow money to purchase land. It requires only a minimum of five percent down payment and is a decent option for those who want to purchase a plot and then construct a house.
4. Finding the Perfect Option
The definition of “perfect home” is a matter of personal choice. Ideally, it is better to invest in a decent home that requires little repairs, placed in a good location rather than a flawless property in an underdeveloped area. The reason, the former is financially more beneficial. Regardless, what you prefer, finding your first perfect home is time-consuming and may prove to be stressful. Regardless of your property choice, make sure to carry out a home inspection before making the final buying decision.
The Bottom Line
First time home buyers, whether in Texas or any other part of the US, need to be disciplined to ensure that their home buying process is seamless. Besides finding out a near accurate amount of mortgage they can afford, they should also learn about various specialty mortgage plans and their eligibility criteria. Therefore, it is not only important to submit all the essential documents during the pre-approval process, but also, find out a mortgage consulting firm has years of experience with first time home buyers.