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Ready to Buy a Home? Start With These Steps

September 18, 2020 7:13 pm Published by

The housing market is hot right now, with fewer homes available, but still a large number of potential buyers. As a result, it’s more important than ever to be on top of your game when it comes to buying one of the homes in Savage MN. Being prepared for every step of the process will allow you to act faster and have a better chance of buying your new dream home.

If you’re already serious about buying a new home, then you should have already taken care of the early stages of the process. That means saving money for a down payment, determining your budget, knowing your debt-to-income ratio, and checking your credit score. These are things that people should do when the thought of buying a home first crosses their mind, as some elements may require more time.

Once you’re in a good position with these initial steps and have a good credit score, a solid downpayment, and a budget, now it’s time to take the next steps. This is where you should be when you’re ready to seriously start looking at homes.

Start with researching loan programs before meeting with a bank. Different lenders have different loan options and it’s a good idea to have a sense of what is involved with each loan solution. You should also be checking with multiple lenders to make sure you’re getting the best rates and options. If you’re working with a new home builder, check to see if they have a preferred lender and any benefits that may provide you. Understanding the different rates and details allows you to ask more questions and fully comprehend this important step. You also need to know what your priorities are, such as a low down payment, a low monthly payment, or the amount of time to pay back the loan. This will help the loan officer match you up with the appropriate loan option.

At this point, if you’ve found a mortgage loan that suits you, it’s important to go ahead and get pre-approval. Don’t settle for pre-qualification, as that won’t help when it comes time to make a fast decision on an in-demand home. A pre-approval doesn’t mean you’re guaranteed financing, but it does mean the lender is much more likely to approve you. To get pre-approval, you’ll need to submit a mortgage application, along with supporting documents, such as ta returns, W2s, paycheck stubs, financial statements, and a credit check. It really is important to have pre-approval before starting a home search, because many sellers and Realtors require this before seriously choosing to work with a client.

Finally, make sure you have some money that is liquid for earnest money that goes into escrow, ensuring your commitment to the purchase of the home. It’s usually around 1-2% of the home price, but can vary depending on the seller. Fortunately, this is money that is either returned to you or goes toward the down payment.

When you choose to buy one of the new homes in Savage MN from Key Land Homes, you know you’re getting a home with a warranty and you’re unlikely to suddenly come across major issues during the inspection before closing. Plus, if you purchase a home still under construction, you’ll have a chance to choose some finishing touches that ensure you get your dream home from the start. Contact us today to learn about our building process, our warranties, our move-in-ready homes, and the deals we have if you go with our preferred lender. If you’ve done your prep work, you’re another step closer to owning a fantastic new home.

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This post was written by Key Land Homes


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