BLOGS

The thought of buying a house can be exciting and nerve wracking all at the same time. The nerves may come, in no small part, because you may not know all of the ins and outs of home buying, especially if you are a first-time buyer. And that is nothing to feel bad about. Afterall, buying a house is a very technical process. At Green Haven Homes, we are fully aware of what goes into purchasing a home. That is why we want to share some of that knowledge with you, so that you can be better equipped to dive into this competitive market.

Get Pre-Approved

One of the most valuable first steps you can take is to get pre-approved. Talk to a lender before you even start visiting houses. Once you have talked to a trusted lender, they will provide you with a pre-approval letter. Equipped with this, you can show sellers that you are serious and ready to move further. This can really put you ahead of other buyers if you are looking at a popular property.

Getting pre-approved is also helpful in showing buyers what they can and cannot afford and what obstacles, such as student loans, they may need to address.

Consider How Much House You Can Afford

Long before you start seriously looking for houses, tend to your credit score. Having a good credit score is extremely valuable. A good credit score is somewhere between 620-680. A good credit score is around 680-740. And if you can get your score above 740? You’re golden.

A good rule of thumb to help you determine how much house you can afford is to calculate three times your income. But, if you have already spoken to a lender, they will have already guided you through this point. There are also handy mortgage calculators such as this one that let you plug in different numbers to get an estimate of what you can afford.

Down Payment Options

Probably what has held you back from buying a house until now is scrounging up enough money for a 20% down payment. And while offering up a 20% down payment is ideal; it is not necessary. Many first-time buyers put down 3-5%, and repeat buyers generally put down 16%. Really, the only time when the size of your down payment may come into play is when there are multiple offers on the same property.

Navigating home buying can be an overwhelming experience, but it does not have to be. Just simply knowing a few key steps in the buying process can make you more confident going forward. And having a trusted realtor by your side to help you through the things you may not be as familiar with can be a great aid. Green Haven Homes has a large portfolio of beautifully crafted homes. Why not have a look at our gallery for inspiration for your future home?