Buying a house can be a wonderfully exciting process. It can also be a time filled with anxiety and frustration unless you go into it with some clear guidelines.

Here are 5 tips to help you navigate the home buying process by ARC Realty:

#1: Get Your Credit in Shape Before Buying a House

The higher your credit score, the lower your mortgage payments. So how high does your credit score really need to be? For good financing options you want to get your score up to at least 680, with the best financing deals going to those with a score of 700 or higher.

You can buy a house with a lower score but you will pay a higher rate for your mortgage due to the higher interest.

About a year before you are ready to buy a house, stop applying for any new lines of credit. Then a few months before you are ready to buy, request a copy of your credit report to check it for incorrect information.

Get any misinformation cleared up before applying for your mortgage.

#2 Buy a House You Can Afford

Susan Tiffany, director of personal finance information for adults with the Credit Union National Association, says that your home expenses should not exceed 28% of your gross monthly income.

A great way to decide if you can afford a specific payment each month is to go ahead and start saving it out. If you can live comfortably while saving the mortgage amount, not only will you know that you can make the mortgage payment, but you will also have some savings to help you with your down payment or home improvement needs.

#3: Get Pre-Approved for Your Loan

Having your financing in place before you start your home search can save you a lot of extra work!

You will know exactly what you can afford from the start so that you don’t waste your time looking at houses that are out of your price range. It also saves you from falling in love with a house that you simply can’t afford.

The approval process is extensive and could take some time so being pre-approved helps move things along much faster once you do find your dream home. In fact, most people will not accept an offer on a house unless you have been preapproved

#4: Location Matters!

It’s a great time to buy a house in Birmingham, AL. The Magic City has been all the buzz lately, showing up in Top 10 lists for everything from best restaurants to city parks.

If you want to live close to your work, shopping, and the city scene then you need to look for a home in close proximity to those things.

If you have children, or plan to have them in the future, make sure you buy a home in a favorable school district.

Buying a home in a great location also ensures that you can sell your house for a good price in the future, decreasing your chances of losing money on the home you choose to purchase.

With so many great neighborhoods in the Birmingham area, you should be able to find a home that meets all your needs. Don’t settle for a home that doesn’t make you happy.

#5: Hire a Professional Real Estate Agent

While it may seem easy to go online and search for a house on the Internet, you will be much better off to hire a professional to help with the home buying process.

An experienced real estate agent can help you with negotiations (which can save you money!) and you can avoid some of the pitfalls that you may encounter if you try it on your own.

Not only can they help you find the perfect home to meet all of your needs, they can also help you navigate the bidding process to make sure that your bid is both competitive yet as low as possible.

Better yet, having a real estate agent on your side when buying a home is often completely free for you! The expense is paid by the person selling the house!

Looking for a Real Estate Agent in Birmingham?

If you are ready to buy a house in Birmingham or the surrounding areas, ARC Realty would love to help you on that journey!

We have a professional team of agents whose goal is to help you find your next home.

Visit our website today to learn more about our agents or call us at 205-969-8910.