Five Things Every Homebuyer Needs to Do

Spring has arrived and summer is right around the corner. While this means no school for kids and warmer weather, it also means a busy real-estate season is about to get underway. Spring and summer are popular times to look for and buy a new home because, well, who enjoys moving into a new home in the middle of a Denver winter? As you prepare to buy a new home, whether you’re a first-time buyer or a seasoned vet, here are five things Gershman Mortgage Denver believes you should do first!

Check Your Credit Score

Bankrate recommends checking your credit score before you ask for pre-approval, and certainly before you go searching for mortgages. You can improve your chances of getting approval for a mortgage if you verify the information on your credit score. For example, you want to make sure your score isn’t being held down by unfair penalties for old, paid, or settled debts.

Get Pre-Approved

Before you go shopping for a new home, it helps to know how much the banks are willing to lend you for a home. Pre-approval for a mortgage tells you how much you can afford to spend on a home, and gives you a leg-up in the mortgage application process later on. If you don’t have this pre-approval, you may just end up wasting the seller’s time, and your own.

Build a Healthy Savings Account

Establishing a healthy cash savings amount before purchasing a home can improve your image in the eyes of lenders. A good rule of thumb is assume you’ll spend 2.5 to 3% of your home’s value on annual upkeep. Setting aside $520 to $625 monthly on a $250,000 home allows you to build that on-hand cash cushion that makes you more attractive to most lenders.

Do Your Research

The cost of buying a home is never just the price you pay for a home. The long-term value of your home is never guaranteed to always go upward either, so conducting some research ahead of your purchase is also important. For example, what is the value of the neighborhood you’re considering? Have home values there been rising or falling in recent years?

It is also a good idea to get a handle on the extra costs you’re likely to face, such as the annual taxes, average utility costs, insurance on the home, and overall maintenance (appliances, HVAC, landscape, yard, etc.).

Get a Good Real Estate Agent

Last but not least, make sure you find a trustworthy and responsive real estate agent to work with. Not only will your real estate agent help you narrow down your search criteria, weed out the homes that won’t suit you and your needs, and serve as a representative of your needs during the process, having a real estate agent can also mean the difference between being taken seriously and being ignored by potential sellers.

Richa Sharma is a freelance author and writes for a variety of online publications. She actively writes blogs and articles and very fond of writing content on different trendy topicss related to Education, training,resources,health and technology.