How to buy a house in the Houston area

1. Shop for a home you can afford

Home shopping can be tempting. Three-car garages! Granite countertops! Stainless-steel appliances! Before you get carried away, research the type of home you actually can afford. If you’re a first-time homebuyer, you may have to settle for a starter home instead of your dream abode.

2. Minimize debt from credit cards and car loans

When lenders evaluate you for a mortgage, they typically look at four things:

• Your income.
• Your savings.
• Your credit score.
• Your monthly debt-to-income ratio.

3. Lower your monthly student loan payments

Even without other types of debt, having a lot of student loans could give you a high debt-to-income ratio. To lower that ratio and show your mortgage lender you have enough extra cash to make your monthly mortgage payments, consider refinancing your student loans or switching to an income-driven repayment plan to lower your monthly student loan payment.

4. Make your student loan payments on time

When mortgage lenders look at your credit history, they’ll want to see that you’ve paid off other debts on time, including your student loans, car payments and credit cards. If you’ve proved you can handle debt responsibly and you have a good credit score to show for it, mortgage lenders will be more likely to approve you — even if you still have outstanding student loans.

5. Save for a down payment and closing costs

Buying a home doesn’t just involve taking on a mortgage — you’ll also have to pay upfront for closing costs and the down payment. Closing-related costs include the home inspection, mortgage loan origination fee, mortgage insurance, homeowners insurance premium and title fees. In total, closing fees cost the average homebuyer about 2% to 5% of the home’s price.

Source: huffingtonpost

About Ameri State Realty: Professional Realtors, Marisol Mendez and Esteban work together and represent early buyers for the purchase or sale of new or used homes in Houston, Cypress, Katy, Spring, Tomball, The Woodlands or any other community in the Houston area we can advise you. “I am a Real Estate Professional in the Greater Houston Metropolitan Area. It has been my greatest pleasure to have helped many families close on their properties in the Houston Area. I am committed to making sure that your buying/selling experience is an enjoyable one. I am passionate about what I do and always looking out for the best interest of my clients.”

How to buy a house in the Houston area.

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