If you are a first time home buyer, purchasing a property you’ve dreamed of and worked hard for could be a thrilling yet demanding thing to do. In the end, it’s one of the major purchases you’ll be having in your lifetime. Now, when you’re not well-versed about the procedure, it could be quite intimidating. Because of this, you have to learn the steps involved that can assist you as you move through considering purchasing a house to closing the deal. In this article, you will be learning a great checklist that can help you keep moving forward in a stress-free and effortless manner. 

Become pre-qualified by a loan representative 

You will be able to know the amount of mortgage you could afford once you are pre-qualified by a loan officer. There are a lot of financial factors, which a loan officer will run through during the process of pre-qualification.  

Credit history 

Another aspect that’s included in pre-qualification would be your credit history since your previous credit history provides a sign of your performance in the future. Guarantee that you are paying your credits on time. Also, if you have a credit that’s less than great, you may need to reach out to a credit repair agency to know about your possible options. 

Income 

Loan officers would think about the kind of work that you do, your position’s stability, and your work history. Aside from that, they will be checking the ratio of your debt to income to know how much you’ll be eligible for. This formula will focus on your existing income vs. your existing debt. 

Savings 

On top of your credit history, debt, and income, your loan officer will also run through the total amount of money that you accumulated in your savings account. Regardless of what kind of load you’ll be having, you’ll be needed to place a loan’s down payment, which ranges from 3-20 percent. 

Look for a real estate agent 

It would be a wise decision to get some help and make use of a real estate agent’s expertise. This agent functions for you and has the accessible tools he/she can utilize to look for homes, which aren’t just within your allotted budget, but also includes the factors that you want to have in a house. Aside from that, they can help you close the cost with the seller, negotiate the price for you, and guide you through the process of property buying. A real estate agent guarantees that you will the greatest deal. 

Submit your application for a mortgage 

Once your offer will be accepted, you will be required to submit your application for a mortgage.  Keep in mind that your pre-qualification was only intended to know how much you can afford. This time, you will see whether you are eligible for a mortgage loan or not. Make sure to prepare the required documents in advance since there is a high chance that your loan officer would want to have a copy of your important documents.