your price range, as well as determine any issues you might have in meeting your basic needs. Do research on items such as school districts, crime stats, impending construction, or anything that could increase or decrease the value of a home.
Step 1: Get Pre-Approved for a Loan
The first step involves finding out how much you can afford for a new home. You’ll also need pre-approval for a loan, whether it’s from your own bank, a different bank (perhaps one that specializes in mortgages or is offering a great interest rate), or another mortgage-lending company. At any rate, the majority of home buyers must work with lenders for mortgage loans because the full cost of a home is usually not within the purview of the typical buyer’s assets. Be careful here. Some banks are willing to lend larger loans than they know are reasonable, creating financial issues for buyers down the road. Even if you know your budget, and you know what’s affordable for you, you could get “tricked” by a bank or lender into thinking you can afford more than you can. Know your limits. Stay disciplined so you stay on track. Let’s say you’re counting on selling your home for x amount of dollars to serve as your down payment for your next home that’s a bit out of your financial reach, and you don’t have extra in your savings account — not to mention that you’re trying to avoid foreclosure. What are you going to do if your home doesn’t sell for the amount you expected? You have to be smart about this. While in the process of buying a home, you must maintain emotional control and make practical decisions based on your budget and situation. The best approach? Pre-approval by a proven, experienced, qualified, and reputable mortgage lender with whom you have worked closely and carefully to determine the appropriate budget for a mortgage loan.
Step 2: Create a List of Needs vs. Wants
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