5 Steps to Take Care Of Prior To Buying Real Estate for the First Time

Most people are excited when they buy real estate for the first time. It is a dream of many to own a house and when the time finally comes for the big day, they really become anxious. But, there are a few things to take care of before buying real estate for the first time.

1. Your credit and FICO score is important and it is the first thing a lender will look at. The FICO score should be between 400 and 850 with 850 being the higher end. The FICO score should be as high as possible. Try to attain a credit report and to find out your FICO score.
2. The next thing to know in buying real estate after knowing your credit score is your finances. It may be that the down payment in purchasing a home can be huge and you should know that there are many different loan/mortgages that have low down payment options. You should not buy a house which will be difficult for you to afford.
3. You may want the mortgage broker or banker to pre approves you when you meet him. Pre approval is an underwriting of your file and it will let you know how much you can spend in buying your house. In order to underwrite your file, you may have to produce your income certificate, credit and many other things.
4. It may be difficult for many people to pay for the entire home upfront and to afford the down payment. Have a look at the down payment assistance programs when you meet with your mortgage broker or banker. By this you will be able to know what programs are available and if you are eligible for them.
5. Look for first time home buyer classes when you buy real estate for the first time. Most often, many lenders and realtors offer education classes for home buyers. By these classes, you will know about applying for a loan, working with a realtor, making an offer, bargaining and closing. The overall process will become smoother for you as you know more about it.

Buying your first home is a big step and it can become overwhelming. If you are unprepared, there are classes and programs that can help you in easing the process. In buying real estate for the first time, keep in mind these five steps and you will find the entire process less daunting.

Author Bio:-The name Sushil Ansal does not need any introduction in the field of Real estate.Sushil Ansal is an iconic figure of his field and has changed the face of Real Estate in India.The Chairman of Ansal Properties & Infrastructure LTD (Ansal API) is the driving force in establishing the brand Ansal API.Mr.Sushil Ansal has had an illustrious career spanning over 50 years.