What does your credit score have to be to buy a house?
Your credit score is a number that depicts your creditworthiness. It’s based on your credit history including the number of accounts you have open, how much you owe, late payments, and other factors. Credit scores range between 300 and 850, and the higher the number, the better you look to lenders. If you haven’t checked your credit score in a while, now is the time to do so!Credit that is in less than tip-top shape doesn’t always disqualify you from buying a home. However, mortgage interest rates go down as credit scores go up. You’ll need a score of at least 700 to qualify for better interest rates and a score of 740 or above to land the best deals.

Step 2: Hire a Realtor

A buyer’s agent can help you navigate through the home-buying process. In some cases, they may even be able to help you find a house before it hits the market, giving you a competitive edge. And when it comes to making an offer, your agent will negotiate on your behalf so you don’t pay a penny more than you have to. This includes getting the seller to pay all or a portion of your closing costs and getting to the best deal for your new home.

Do you need a realtor to buy a house?
A buyer’s agent is a real estate professional who specializes in working with people who want to purchase a home. Buyer’s agents have a legal obligation to protect your interests and work to make sure you get the best deal possible. A real estate agent can tell you if the local schools are trending better or worse, if city and county taxes are going up, if crime is going down, and if radon is an issue. Choosing a good buyer’s agent shouldn’t be difficult if you ask plenty of questions. Here are a few examples:

• About how many families they help each year?
• How many homes have they personally owned?
• How long have they been in the industry?

Step 3: Get Preapproved for Your New Home Loan

The best way to buy a home is to get educated about the home buying process so you are prepared to speak to licensed mortgage advisor about your home buying goals.

How do you get preapproved for a mortgage?
A preapproval allows you to determine how much money a lender will give you to buy a home. All it takes is verification of your income and assets, a credit check, and preliminary underwriting and you’ll get a preapproval letter outlining the loan amount, loan program, interest rate, and down payment you’re approved for. All home buyers should go through the preapproval process before they begin looking at available properties.

Step 4: Start Your Home Search

Now the fun really starts! With your finances in order, a preapproval letter in hand, and a buyer’s agent by your side, you’re ready to look at available homes. But what should you be looking for?

Go look at different areas and neighborhoods
This is a great way to get a look at different neighborhoods and start your list of property wants and needs. Get your significant other and kids (if you have them) involved while you’re at it. The right home should make everyone happy even if some compromise is required. Your buyer’s agent can be an invaluable resource. They can help you target your search to neighborhoods within your price range and ones that are likely to appreciate in the future.

Step 5: Make an Offer

It takes buyers an average of 10 weeks to find the right home. Once you’ve found yours, it’s time to submit an offer on the property.

How do you make an offer on a house?
Making an offer on a home generally involves drafting a letter that includes the price you’re willing to pay for the home, your timeline and target date for closing. It may also include and any additional terms you want the home seller to consider. You should rely heavily on your real estate professional for this. They may be able to get an inside track on the motivating factors for the seller.

Just remember that once you make the offer, an agreement may be quick and painless, but it may also take some back-and-forth between you and the seller. Be prepared to negotiate.

Step 6: Get a Home Inspection and Appraisal

Once the home seller accepts your offer, you’ve signed a purchase agreement, and deposited any earnest money, you’re considered officially under contract. You still need to make sure that the home you intend to purchase is everything the seller says it is.

What is a home inspection?
A home inspection is a the best way for you to ensure the home you plan on buying is exactly what you think it is. It will identify any structural issues and necessary repairs on the property. If the inspection professional finds problems with the home, you can require the seller to fix them, reduce your offer accordingly, or even cancel your contract. A home inspector is a critical hire. The home inspector you choose needs to be vetted, so find out if they are a member of any associations such as the American Society of Home Inspectors.

What is an appraisal?
Mortgage lenders require you to have the property appraised as protection against loaning more than the home’s true value. If an appraisal comes in lower than your offer price, your buyer’s agent can work with you on what to do next. You may be able to negotiate the seller down on the price, for example, or you may need to cancel your contract. You usually don’t have a choice on appraisers, they’re a third-party service hired to identify if the contractual value can be found from the recent comparable sold homes.

Step 7: Closing Day

The final step in the home-buying process is closing on your new place! Before you get the keys for your new home and officially call it your own, you have one more sprint ahead of you: paperwork. You should receive a copy of your closing documents to review ahead of time so there are no surprises on closing day. These documents will include important details on your mortgage terms, closing costs, prorated property taxes, homeowner’s association fees (if any), and prepaid homeowner’s insurance requirements.

What happens on closing day?
You’ll need to visit your bank to get a cashier’s check for your down payment, closing costs, and prepaids or arrange a bank wire transfer directly to the closing agent or title company. At the actual closing, you’ll sign a big pile of documents and get they keys to your new home! It should be a pretty painless experience if you chose a good real estate agent and mortgage lender at the beginning.