If you’d like to buy a home, here’s how to start the process:
Speak the language. Many lenders, real estate firms, and nonprofit groups offer free home-buying seminars, which can help you get started. When you’re trying to finance a home, you’ll run into terminology you won’t find elsewhere. These seminars can help you to understand what people are talking about.
Don’t be discouraged. Don’t be reluctant to buy a house because you think you need lots of money. There are ways to buy a house with very little money. In fact, one recent trend has been an increase in low-down-payment mortgages.
Nevertheless, you should have at least 10 percent of the cost of the house saved up, to cover a down payment, closing costs, and other expenses.
Check your credit. When you start applying for a home loan, lenders will check your credit history so you should make sure that all of your current obligations are up to date. You also should take a good look at your credit history.
Call Equifax (800-685-1111), Experian (888-397-3742), or Trans Union (800-888-4213), the three major credit reporting agencies. You can call any one of the three agencies for a report. However, if there are any errors, you need to work with all three to get them cleared up.