The process of buying your first home in Cabot AR

You are ready to take the next big step in life, ready to own your first piece of real estate. You have seen some homes that you like, but what do you need to do to buy them? How much will it cost? How long will the process take? What will you have to pay out of your pocket?

These are all relevant questions that first time home buyers should ask. I wanted to begin a series that will explain the home buying process to first time home buyers in Cabot. The reason this is specifically for Cabot, AR is because prices may vary in different regions of the country or even the state. So lets get started.

Most home buyers like to start off by looking at home they want, and neighborhoods they like. This is natural. I recommend that getting preapproved should be the first step in the process. Take the time to talk with a lender and find out what amount you can get preapproved for. This will save you and your agent time in the long run. Talking to a lender beforehand will:

1. Let you know the maximum amount you are approved for.

2. Tell you if you have to put any money down.

3. Know what kind of a loan you are approved for (certain loans will require the house to have specific requirements).

4. Lock in an interest rate that may be higher if you wait.

5. Give you an idea of what your monthly payment will be if you use your maximum loan amount.

6. Once you know your maximum loan amount you will have a price range to look in and not be gazing over homes out of your price range.

Remember when chosing a lender, you do not have to use your bank. Go shopping around, different lenders have different interest rates and requirements for borrowers. Sometimes mortgage companies are the better option. You need to check out about three different lenders to get an idea of what you can get.

One thing to remember, this is very important. When going to different lenders only have the first lender pull your credit score. They will be able to get an average of the three major credit companies and give the score to you. Take that average score to the other lenders and give it to them. You do not want all of them to run your credit score. Your score go down if it is pulled multiple times.

For the next installment, I will talk about how to save time and frustration looking for homes in Cabot, AR. If you are a first time home buyer in Cabot, AR or know someone who is I would welcome the opportunity to speak with them about the process. Email me or visit me at cabot4sale.com.

Good day