Asked by: Peru Crujera
real estate real estate buying and selling

How do you start buying a house?

Last Updated: 9th January, 2020

23
10 Steps to Buying a Home
  1. Step 1: Start Your Research Early.
  2. Step 2: Determine How Much House You Can Afford.
  3. Step 3: Get Prequalified and Preapproved for credit for Your Mortgage.
  4. Step 4: Find the Right Real Estate Agent.
  5. Step 5: Shop for Your Home and Make an Offer.
  6. Step 6: Get a Home Inspection.

Click to see full answer.

Also question is, what kind of credit score do you need to buy a house?

An FHA loan requires a minimum FICO credit score of either 580 or 500 depending on your down payment. With VA, USDA and conventional loans, no firm minimum score is needed but lenders generally expect a FICO score of at least 620.

Also, when should you start looking to buy a house? But the odds of finding your dream home in two months might be quite low if you're a picky buyer, which you should be in most cases. In reality, you could well be looking for six months before you find something you like, then once you submit an offer and get your mortgage, it's seven or eight months.

Just so, what are the steps to buying a home for the first time?

Home Buying: 10 Steps to Success

  1. Step 1: Check your credit report and score.
  2. Step 2: Figure out how much you can afford.
  3. Step 3: Find a real estate agent.
  4. Step 4: Get pre-approved by a lender.
  5. Step 5: Start looking at homes.
  6. Step 6: Make an offer.
  7. Step 7: Home inspection day.
  8. Step 8: Get insurance and establish utilities.

How much can I borrow with a 700 credit score?

Most lenders consider a credit score between 700 and 749 to be good, but the lower cutoff can be anywhere from 680 to 720.

Credit score ranges: Is 700 a good credit score?

Range Category
Excellent 750 to 850
Good 700 to 749
Fair 650 to 699
Poor 550 to 649

Related Question Answers

Iyad Yan

Professional

Do you need money in the bank to buy a house?

Most lenders require you to make a down payment. You may have a hard time finding some pennies to put in your piggy bank once you've paid all your monthly bills. For most young couples buying a home with cash is a pipe dream, but thankfully you can borrow the bulk of the money you need when you buy your nest.

Emilee Brzymialkiewic

Professional

How can I get a house with no money?

If coming up with a down payment is a struggle, an alternative to buying a house with no money down is an FHA loan. The FHA does not offer a no-money down loan. However, they do allow for loans with a down payment as low as 3.5% of the home's purchase price.

Yassin Doring

Professional

Is it a bad time to buy a house?

More Americans say now is a bad time to buy a home. Just 21% of Americans say now is a good time to buy a home, a drop from 28% in September, according to a monthly sentiment survey by Fannie Mae. There was also a decline in the share of people who think now is a good time to sell a home, from 44% to 41%.

Jolanta Orefici

Explainer

What is an ideal credit score?

For a score with a range between 300-850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. FICO® Scores* and scores by VantageScore are two of the most common types of credit scores, but industry-specific scores also exist.

Shawnee Tropinov

Explainer

How long does it take to build credit?

six months

Darlena Wabnegg

Explainer

What is a fair credit score?

A fair credit score is usually defined as any score in the range of 620-659. Bear in mind that not all lenders define fair credit the same way. Some may have higher standards, for example, starting the fair credit range as 640 and ending it at 699. Furthermore, fair credit is far from a life sentence.

Rafayel Kellen

Pundit

What is the minimum credit score for a mortgage?

Many things factor into getting a mortgage, but it all starts with your credit score and your credit history. While there is no official minimum credit score for a home loan approval, the minimum FICO credit score for conventional loan approval tends to be around 620.

Primitiva Chaveli

Pundit

What should you not do when buying a house?

Watch Out! – 14 Things to Avoid Before Buying a House
  1. Don't miss loan payments.
  2. Be careful before you consolidate your debt.
  3. Avoid changing jobs.
  4. Don't shift your finances around before getting the loan.
  5. Don't start banking at a new institution.
  6. Avoid buying a car.
  7. Don't buy furniture or household goods on credit.

Eldon Halfan

Pundit

How do I prepare to buy my first home?

To guarantee you're financially ready to buy your first home, you'll need good credit, cash to close, and a verifiable income.
  1. Check your credit.
  2. Save cash for a down payment and other expenses.
  3. Get your documentation in order.
  4. Mortgage types.
  5. Mortgage fees.
  6. Private mortgage insurance (PMI)
  7. Read more.

Morris Persohn

Pundit

Do you need a downpayment for first time home buyers?

FHA loans require just 3.5% of the purchase price as a down payment making them an attractive option for first-time buyers. If you do have at least 20% for a down payment then you can avoid mortgage insurance by using a conventional mortgage.

Yonghai Terhaer

Pundit

How long does it take from start to finish to buy a house?

So, on average a homebuyer will spend 30-60 days shopping, 14-60 days from contract to close, and likely 14-45 days or so before your first mortgage payment is due. For some folks, the process can be extremely quick and take as little as 30 days total. For some, the shopping period alone can last months and months.

Alirio Gotschlig

Teacher

How much money should you have saved to buy a house?

Saving 20% of your income could catapult you into purchasing a home in the next 12 to 16 months, depending on your market. For example, if you're earning $96,000 per year, that's $19,200 saved after one year. $28,800 saved after a year and six months, which can be plenty of funds to make home-ownership a reality.

Abdennabi Gamble

Teacher

How much money do I need to buy a house?

Average Cash Needed to Get a Mortgage
Let's say you're buying a $200,000 house using an FHA loan. FHA loans require a 3.5% down payment as long as you have at least a 580 credit score, so you need a $7,000 down payment. You'll need two mortgage payments in reserves ($2,800). Closing costs we can estimate to be $4,000.

Leonides Rochas

Teacher

How much home can I get approved for?

To determine how much house you can afford, most financial advisers agree that people should spend no more than 28 percent of their gross monthly income on housing expenses and no more than 36 percent on total debt -- that includes housing as well as things like student loans, car expenses, and credit card payments.

Bouchaib Bartlewski

Teacher

How many times should you view a house before buying?

Ultimately, there is no right or wrong answer although it's almost always a good idea to view a property more than once before making an offer. Typically, people will view houses between 2-4 times before making an offer, but you should view a property as many times as you need to to be sure it's the right one for you.

Yarisa Home

Reviewer

What are the best months to buy a house?

The best months to buy a home
Generally, the best time to buy a house is in the late summer or fall. Shoppers will find plenty of homes on the market, but not as much competition for them as in the spring and early summer, when more buyers are on the prowl. So there's a greater likelihood you'll get a bargain.

Marth Grote

Reviewer

What is the best month to put your house on the market?

According to a study by Zillow, homes listed between mid-March and mid-April traditionally sold the fastest; however, a declining number of available homes on the market has now pushed back the window of opportunity back. Still, spring and early summer remain your best bets.

Vinita Mindrico

Reviewer

How long should it take to find a house?

On average, the house hunting stage can take three to six weeks. But it can easily go longer in larger markets with a lot of inventory, and for buyers who are limited to weekend searches.

Pedro Stegmann

Reviewer

How fast can you buy a house?

It takes about 6 months to buy a house, however this varies from move to move. On average it's 20-90 days to find a house, 15-30 days to receive a mortgage offer, 20-30 days to find a solicitor and exchange contracts then 10-30 days to complete and get the keys.

Co-Authored By:

EveryThingWhat Staff Editor

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9th January, 2020

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