Whether you’re a first time home buyer or haven’t purchased a house in a while, searching for brand new homes for sale can be overwhelming if you’re not adequately prepared. Since buying a new home is one of the biggest decisions you’ll make, getting quick and informational answers to your questions helps you understand the buying process and make the best decision possible. To help you snag your dream home, here’s a checklist of everything you need to know.
How to Prepare to Buy a Home
Check Your Credit Score
First and foremost, you’ll want to get a credit report to make sure you have a strong credit score. Fortunately, federal laws make it easy for anyone to obtain one free copy of their credit report every 12 months.
Check Your Debt-to-Income Ratio
Once you know your credit card is solid, you’ll need to determine your debt-to-income (DTI) ratio, which is your monthly debt payments divided by your gross monthly income. When considering your debt, you need to include student loans, child support payments, car payments, credit card payment, etc. As a general rule of thumb, your DTI should be no higher than 43%. If it’s under 40%, you’re in good shape.
Save for a Down payment
To get the best rates, you’ll need to garner up a 20% down payment. If that number is unrealistic, rest assured other loan options will help you put down less. With FHA loans, you can get away with a down payment as low as 3.5%, whereas USDA loans sit at 0% down.
Find a Real Estate Agent
Real estate agents can guide you through the entire home buying process. Although you are not legally required to have your own Realtor, it may be a wise idea. At the end of the day, it’s a choice you have to make. Either way, you will be in good hands if you choose to buy from Wright Homes.
Since builders must be represented by a licensed real estate broker or agent, you can expect to work with a licensed Realtor when visiting a model home or on-site sales office. If the person staffing the sales office is not licensed, they cannot discuss price or most of the finer points of information you will need.
The builder’s Realtor acts in the capacity that a private home seller’s agent would, and that means that this agent’s primary duty is to the builder. Nevertheless, they must be honest, provide you with all pertinent facts, and make full disclosure about anything that could be material to your purchasing decision.
The other important point is that the builder’s agent is THE expert in their community and can provide you with answers to your questions and all the information you could ever wish for, during the purchasing process.
If you’re unsure how to find a real estate agent, check with friends, family, and co-workers for referrals.
Pre-qualifying is a great way to determine how much home you can comfortably afford so you shop within your price range. Plus, it also lets the seller know that you mean business.
We’ll introduce you to our preferred lenders who will take you through the pre-qualification process. Our preferred lender is the Security National Mortgage Company. They offer a full range of mortgage products, including FHA, VA, USDA, Conventional Mortgages, and Construction Financing. Our mortgage loans are processed in-house through our “rapid response” underwriting systems, receiving same-day decisions, saving time and money. We will take the time to understand your goals and make the process straightforward and smooth from start to finish.
Make an Offer
Once you find your dream home, you’ll want to make an offer since today’s market is competitive. To determine your specific purchase offer and impress the seller, study market comparables, and consult with your real estate agent.
Close on Your New Home
If your offer gets accepted – congratulations! You’re one step closer to becoming an official homeowner. Now you’ll need to begin the closing process, which involves a home inspection, the fulfillment of seller obligations, closing costs, and more. Before moving into your Wright Homes home, We will walk you through your new Utah home, orient and explain the latest in home features, educate you on how to best care for your home, and make sure you enjoy all aspects of your dream home.
Start Your Home Buying Journey With Wright Homes
We’re committed to making the home buying process as smooth and enjoyable as possible for you and your clients. We offer a one-of-a-kind experience and quality construction with attention to full details. Wright Homes builds high-quality, affordable homes and townhouses throughout northern Utah, including Herriman, Draper, and Riverton. Contact us today or visit one of our new home communities for a personal tour.