Many home buyers can feel confused at various points of a home buying process. The good news is that many of the questions you have are common questions that plenty of people in your situation ask. If you have a lot of question regarding home purchasing, here are some of the most common questions asked:
1 – What Can I Afford to Buy?
This is quite the complicated question. The answer can vary depending on your income and other financial obligations you already have. A financial advisor can really help you get a true estimate of what you would be able to afford. As well, realtor.com has a Home Affordability calculator to give you an idea of a price range of your new home. This is a step a homebuyer should take control of before searching for an agent. Meet with a lender to get pre-approved for a home loan. The process of getting pre-approved can make you much more attractive to home sellers.
2 – How Many Should I Look at Before Purchasing?
There is actually no right or wrong answer. With the influence of the internet and new technology, viewing homes online can really help you get a understanding of available homes in the given area. It depends on the type of buyer you are. Some buyers find their home within a few hours while other take up to several months to chose a home and put in an offer. Your agent should work as a liaison and advisor of how you should make your decision.
3 – Is This a Good Deal?
These questions are rooting in the trust you have with your agent. It is a moment where you have to trust the instinct of the professional and then make the choice to move forward with a sale. There is no formula to predict whether or not a specific home is a bargain or will appreciate in value but conducting extensive research can keep expensive surprises to a minimum. An easy way to get a sense of the home would be to study the surrounding home and find if their value is moving up or down.
4 – Does my Credit Score Matter?
Your credit score does matter. When determining how much you can afford for a home and whether you are eligible for a home loan, the lender will look, first thing, at your credit score. Typically, you need to have a score over 580. The ideal score to have would be slightly over 620. The higher your credit score number, the better lending terms you may be eligible for.