You and your family have decided that you are going to purchase a new home and all of you couldn’t be more excited. The benefits of homeownership are too numerous to list here, but include a heightened sense of pride, an asset that will likely increase in value over time, and a place for you and your family to call their own.
As you begin the journey of locating your home and going through the process to secure it, it is helpful to have an understanding of what this entails so that you’re prepared for it. Locating a home lender early, and doing the appraisal and home inspection are critical elements of a home purchase. Here is a description of each and why it is important.
Locate a Lender Early
If you’re planning to have your home finance by lending company, the smartest decision to make is to get pre-approved by a lender. The pre-approval process will help you to understand exactly how much house you can buy. Also home sellers will take you much more seriously when they know that you have a lender and a loan in hand.
Lenders will take all of your vital Information including your income, liabilities, debt load, past credit history, and your credit score in order to determine how much of a loan you’re eligible for. They will use this information to create a letter for you that confirms your ability to buy a certain priced home.
If you are competing with other home buyers and you have a pre-approval letter from a reputable lender, and they do not, the seller will take you much more seriously because the buyers without a pre-approval letter may not get approved by a lender. For this reason having a pre-approval letter is a smart thing to do when you are buying a home.
Get the Home Appraised
When you select the home, the lender will want to know the actual value of the home, before they will lend. An appraisal is the assessment of the value of the home performed by an independent reputable appraisal firm. Companies like NovaStar Appraisals, Inc. have the confidence of lenders that they will accurately determine the value of a home for sale. They used detail research techniques that include surveying for the value of similar homes in the neighborhood, home trends in that particular neighborhood, and an accounting of any upgrades or renovations that might increase the value of the home.
The resulting appraisal is a key document for blenders to determine how much money they will land the buyer to purchase the home. Getting a home appraisal from a reputable appraisal company like NovaStar Appraisals, Inc. puts you in line to work with reputable lenders who are interested in helping you secure your new home.
Getting pre-approved by a reputable lender and securing a home appraisal from a reputable appraisal firm are two key steps to buying your dream home.