How to Buy a House

Before attempting to buy one of the new homes in Grand Forks ND, it’s helpful to understand the process, from preparing your finances to the final closing. The more knowledgeable and informed you are, the easier and less stressful it will be.

First, make sure you’re financially stable enough to purchase a home in the eyes of lenders. Your credit score typically needs to be at least 620, although FHA loans will often accept lower credit scores. Still, ideally it should be 740 and up. Your debt-to-income ratio is also examined by lenders. A ratio of 50% is around the average of your gross monthly income and how much you’re spending on recurring payments, such as car payments and credit cards.

You’ll also need to save for a downpayment and closing fees. Ideally, you should put down 20% of the total home cost for your downpayment to get the best loan. However, there are other options, including VA and USDA loans, which accept less or even none at all, with certain restrictions.

When you’re ready to start looking for a home, apply for a mortgage preapproval. This is where lenders look at all of your financials and determine what they are willing to offer. The preapproval is good for 90 days and it can speed up the purchase once you find a home, as you don’t have to wait for approval, which also makes sellers more likely to work with you. Unless something changes drastically financially, you know how much you can get and at what interest rate.

When you start the home search, have a clear idea of what you must have versus what you’re willing to compromise on, including location. This helps you narrow down your search and save time. Once you find your home, make an offer, keeping in mind the state of the market at the time and how much you’re willing to go over with counter offers or other adjustments.

Once your offer is accepted, arrange a home inspection immediately to ensure there are no hidden issues with the home that could be too costly. Even if issues arise, you may be able to come to an agreement with the seller. You’ll also need to finalize your mortgage approval and get a home appraisal for the mortgage lender, because they will not lend more than they believe the home is worth.

Before the final closing, do a walk-through to make sure any repairs have been made and the home is still in the shape it was when you made your offer. Then it’s time to do the closing, covering all of the official paperwork and payments. After that, the house is yours!

If you’re ready to buy one of the new homes in Grand Forks ND, reach out and contact us today to learn about the outstanding homes we have in the inviting Grand Valley community.

Categorised in: How to Buy a House, How to Choose the Best Lot in New Subdivisions, New Home Tips

This post was written by Crary Real Estate