7 Ways To Prepare To Buy Your First House in Long Beach

When preparing to buy a home, there are seven steps that you should take to make sure that you get the best deal for your investment.

1- Credit Report and Score

The first thing that you will want to do is get a copy of your credit report from each of the three reporting agencies to complete a review. You are entitled to one free credit report each year for this purpose.

Nearly every credit report contains mistakes that can significantly impact their credit scores. You will want to review everything on your report and dispute errors so that the report is accurate and reflects an accurate score.

Your credit score will impact the amount of money you can finance in a mortgage, the downpayment requirement, and if you will need mortgage insurance. Your credit score will also determine your interest rate.

2- Pay One Time and No New Credit

Once your credit reports are in good order, you want to make sure that you continue to make timely payments on all of your credit lines so that no negative marks occur.

It would help if you also refrained from applying for any new credit, even for the smallest amount, because that can impact your credit score and your debt to income ratio. Keep everything as-is until after you have signed for a mortgage.

3- Shop for a Mortgage

Mortgage lenders are not all the same. It would be best if you shopped around to find the best rates. Look at closing costs, interest rates, and any other expenses that the lender may charge for processing their loans. Check a minimum of three lenders before you decide which one to use.

4- Prequalify for a Mortgage

Once you found a good lender to use, you will want to prequalify for a loan. When you prequalify for a mortgage, you are giving yourself an advantage. Many sellers are more willing to negotiate with a buyer that has already been approved for a loan because this speeds the buying process.

Knowing exactly how much you have prequalified for with a loan will also help you look for homes within that price range. Most people are pleasantly surprised to discover that they can actually afford more homes than they would have expected.

5- Make a List

You should sit down and make a list of what you expect from your new home. Include on your list things the house must have, things that would be nice to have, and unacceptable things. This list will help you streamline your home buying process and make working with a realtor much easier.

This list is crucial to your home buying experience. When you know exactly what you want from your new home, you will be more satisfied after the purchase.

6- Browse Listings In Area

Get a feel for what you should expect from the available listings in the area. Having a lot of information before buying your first home in Long Beach will help with the decision process.

7- Contact a Realtor

Now that you are ready, it is time to contact a realtor and begin searching for your new home. Make sure you have the list you made ready to show the realtor; this will reduce time visiting homes that do not meet your standards.

Following these seven simple steps can make finding the right home much easier.

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