Ask a REALTOR®: 30 Common Real Estate Questions Answered in 30 Days: Question 16: What is the first step for buying a home?

Starting Your Home Buying Journey: Key Steps and Loan Options Explained—Real Estate Q&A

Meta Description: Discover the essential first step for buying a home—checking your credit score. Learn about different mortgage lenders, loan options like FHA, conventional, and VA loans, and tips for navigating the home buying process.

Content: Welcome to Day 16 of my real estate questions series, focusing today and through the end on buying a home; today is the initial step for buying a home:

Question 16: What is the first step for buying a home?

The first step in the home buying journey is to check your credit score. A credit score of 750 or higher signals financial reliability to lenders, increasing your chances of qualifying for loans with lower interest rates. Factors like consistent on-time payments, diverse credit types, and long-term borrowing history contribute to a high credit score.

Different mortgage lenders offer varying loan options based on credit scores:

• High Credit (750+): Opens doors to favorable loan terms and lower interest rates.
• Good Credit (700-749): Still offers decent loan options; consider boosting with a substantial down payment.
• Fair Credit (650-699): Loan options are available but may require more effort to qualify.
• Poor Credit (550-649): Challenging range with limited loan options; explore FHA, conventional, or VA loans carefully.

FHA Loan: Ideal for first-time homebuyers, requires a credit score of at least 580, and accepts down payments as low as 3.5%. Be prepared for higher insurance premiums due to lower credit scores.

Conventional Loan: Offered by Freddie Mac or Fannie Mae lenders, requires a credit score of 620+, with varying down payment requirements and private mortgage insurance for down payments less than 20%.

VA Loan: Specifically for military personnel and spouses, requires a credit score minimum of 620 and may not require a down payment, although fees can be wrapped into the loan amount.

When applying for a loan, avoid making major credit purchases or closing credit accounts to prevent negative impacts on your credit score.

For personalized advice and assistance in navigating the home buying process, reach out via text or call at 405.401.0099 or visit https://daveparker.sites.c21.homes. Start your journey to homeownership today!

Stay tuned for tomorrow’s question: How long does it take to buy a home?

For full text, visit video on our YouTube Playlist: https://www.youtube.com/playlist?list=PLOrIAsa07BvxMX7230jW_xOrrLzrBxPt0

Dave Parker, REALTOR®, License #204189, Phone (405) 401-0099.

Century 21 Judge Fite, 1220 S. Santa Fe, Edmond, OK 73003, Broker #154475. Contact (405) 359-7400. Email: Dave@mrdaverealty.com.

Website: https://daveparker.sites.c21.homes

Questions courtesy of Clever.com

KEYWORDS:

• Home buying process
• Credit score check
• Mortgage lenders
• Loan options
• FHA loan
• Conventional loan
• VA loan
• Credit score ranges
• Homebuyer tips