For a first-time homebuyer, navigating the process can be a little overwhelming! That is why the realtors at Anchor Realty are here to help you with every step along the way. We also work with outstanding professionals in our community to guide you in making the best decision for your family and future. Here’s a list of key steps you can begin in your journey to becoming a homeowner.   

Check your credit score

Your credit score plays a significant role in determining whether you will be approved for a mortgage and what interest rate you’ll qualify for. A credit score of 700 or higher is what you want to aim for to get the best offers. 

Gather financial documents

When preparing to get pre-approved for a home loan, lenders will want to view a lot of paperwork and see that you have longevity and stability in your job and income. Some of the documents you will need access to include: 

• Pay stubs
• Bank statements
• Tax returns
• W-2 forms
• Identification cards, such as a driver’s license

Determine your budget

As a general rule of thumb, keeping your debt-to-income ratio below 30% is recommended to ensure that you can afford your mortgage payments along with your other obligations and monthly expenditures. If you have high–interest debt, such as credit card debt, it’s best to pay those off before taking on a mortgage. You can also use a mortgage calculator to help determine how much house you can afford based on your income and current bills. Besides the mortgage payment itself, some of the expenses you also need to keep in mind when considering buying a house include:

• Property taxes
• Insurance
• Maintenance and repairs
• Closing costs

Get pre-approved for a mortgage

Getting pre-approved with a lender for a home loan means that the lender has reviewed your financial information and has given you an estimate of how much they are willing to lend you. This will depend on your credit and other factors such as income, how long you’ve been employed and how much existing debt you have. Getting pre-approval is not a guarantee of approval. Think of it more as a preliminary assessment of your creditworthiness. Once you receive a letter of pre-approval, keep in mind there is an expiration date before you have to reapply for pre-approval. Getting a pre-approval gives you an idea of how much you can borrow and shows sellers you are serious and ready to buy their home once you’re ready to make an offer. 

Research and choose a mortgage option

• Fixed-rate vs. adjustable-rate loans
• Government-backed loans (FHA, VA, USDA)
• Conventional loans

Find a real estate agent

Finding a reputable agent who will guide you through the home-buying process and help you find the right property is essential! Our agents at Anchor Realty are devoted to providing outstanding support, answering all your questions and getting you the best deal available. We’re never pushy or aggressive! We stand on our values of excellence and integrity in every encounter and thrive on providing the best buying experience for you. To be the best realtors in Central Texas, we work tirelessly to exceed our buyer’s expectations and earn your trust. When looking for a realtor, buyers should never be afraid to ask questions, and we’re here to provide answers!

Identify your needs and wants

• Are you looking to buy a home in Belton, TX, near the best schools?
• Do you want to find the best neighborhoods to live in Temple, TX?
• Maybe you want to find land in Salado to build your dream home? 
• Perhaps you want to find homes for sale on Lake Belton?

Along with our Central Texas MLS (multi-listing service), the agents at Anchor Realty can help you find your perfect new home in the perfect location! Some of the things to consider when buying include: 

• Location
• Square footage and layout
• Number of bedrooms and bathrooms
• Type of property (single-family home, condo, townhouse)
• Lot size
  

Search for homes

Once you know your price range, it’s time to begin looking for properties! Our search function includes filters to find exactly what you’re looking for, or you can work with your agent to look for properties that fit your needs. Many times, our agents know of properties that are “coming soon” before they even get listed. 

Make an offer

When you find a home you like, it’s time to work with  your agent to make an offer on the property. Some things that our agents can help with include negotiating a fair purchase price, contingencies, inspections and appraisals, financing, and closing dates. 

Inspect and appraise the property

Once your offer is accepted, it’s time to hire a home inspector to identify potential issues with the property. The lender will also order an appraisal to ensure the property’s value is sufficient to secure the loan.

Finalize your mortgage application

Once you’re ready to purchase the house, it’s time to get everything together to complete your mortgage application. Your lender will provide you with a list of documents they will need to finalize the application. This process usually takes around a month but can vary depending on things like how quickly you provide the documents they need. Once all the paperwork is done, the lender will set up a date to close on the property. Once the final documents are signed and ownership is transferred, you will receive the keys to your new home. Now, it’s time to pack and move in!