How to Prepare for Homeownership in Houston

At Angel Fultz Realty, we help many first-time home buyers prepare for homeownership in Houston. Most people understand the benefits of homeownership, and many even have a general idea of what kind of house they’d like to live in. But homes are expensive, and finding the right one at the right price is a major challenge! For that reason, homeownership in Houston can sometimes seem hopelessly out of reach. 

Fortunately, with the right preparation, owning a home in Houston is an achievable goal! We help clients find the right home in Houston according to their finances and needs. The first step is to get a solid handle on both of those. 

Prepare for Homeownership in Houston

1. Check your credit now.

Because most homebuyers need a loan to buy a home, the first step in preparing to buy is to check your credit. We recommended you have a credit score of 620 or higher when you apply for a conventional loan. If your score is below 620, lenders either won’t be able to approve your loan or may be required to offer you a higher interest rate, which can result in higher monthly payments. 

2. Build credit with three revolving lines.

If your credit score needs some work, your next step will need to be building your credit. That means creating some good credit history. The best way to do this is with three revolving lines of credit. Revolving credit is a line of credit that remains available over time, even if you pay the full balance—credit cards being the most common example. 

3. Create a new savings account for a down payment.

Most home purchases require a down payment of tens of thousands of dollars. In order to be sure you have the money you need to make this down payment, we recommend opening a new savings account for this sole purpose. Don’t use your life savings or emergency fund for a down payment! Create an account and add to it until you have as much as you need to make a down payment on a house.

4. Research Houston neighborhoods.

Do you know where you’d like to live in Houston? Do you know where you can AFFORD to live in Houston? The answer to these two questions might not always be the same! Do your homework ahead of time so that you aren’t wasting your time looking at houses that don’t meet your location needs. Fortunately, there are many fine neighborhoods in Houston to choose from.

5. Get pre-approved for a loan.

Mortgage pre-approval is kind of like a physical exam for your finances. While it sounds a little scary, it’s an important and necessary step for most homebuyers. Consulting with a mortgage lender and obtaining a pre-approval letter can serve to clarify your total house-hunting budget and the monthly mortgage payment that you can afford. If you don’t qualify for a loan, this process will tell you what you need to work on to attain one.

6. Hire a Realtor®.

No matter what kind of home you’re interested in, you are going to need a trustworthy

professional to help you get the best deal and avoid problems along the way—especially if you’re a first-time home buyer. Realtors® are local experts with connections across the real estate industry, including lenders, insurers, and other pros you’ll need when you own a home. Most importantly, a Realtor® only gets paid when you make a purchase, so they will always be motivated to find a home that meets your needs!

Ready to Prepare for Homeownership in Houston?

We can help! Angel Fultz Realty assists home buyers from all walks of life to achieve their dream of owning a home in Houston. We specialize in real estate located in the Greater Houston Area, and we can answer any and all questions you may have about the home buying process here. Contact us today for a free consultation on your home buying options!