{"id":369061,"date":"2016-04-04T10:47:11","date_gmt":"2016-04-04T15:47:11","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/buying-a-home\/beginning-a-home-search.html"},"modified":"2023-08-22T10:22:26","modified_gmt":"2023-08-22T15:22:26","slug":"beginning-a-home-search","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/buying-a-home\/beginning-a-home-search.html","title":{"rendered":"Beginning a Home Search"},"content":{"rendered":"\n
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Beginning a Home Search<\/h1>\n
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\n By Melissa McCall, J.D.<\/a> | Legally reviewed by Katrina Wilson, Esq.<\/a>\n | Last reviewed\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Buying a new home is a significant life event, especially if it is your first homebuying process.<\/p>\r\n

This article will explore the tools you need to navigate the housing market and find a home that is perfect for you.<\/p>\r\n

Affordability<\/h2>\r\n

Affordability is a bedrock component of the homebuying process. First-time homebuyers and seasoned homebuyers should understand how much house they can afford. Before you start house-hunting, many Realtors and real estate agents will ask for a mortgage preapproval letter. Preapproval letters tell you and the real estate professional exactly how much you can afford to pay for a house. <\/p>\r\n

Pre-qualifications are not as in-depth as preapprovals but will give you and your real estate agent an estimate or idea of how much you may be able to afford. But a pre-qualification is not as accurate and doesn’t carry as much weight as a preapproval.<\/p>\r\n

Providing Financial Information<\/h3>\r\n

Mortgage lenders will ask for proof of income, credit reports, credit scores, and past bank statements to determine your mortgage loan options. With this financial information, the mortgage lender can assess your debt-to-income ratio. As you embark on your path to homeownership, monitor your credit card usage and credit score, as these factors affect your home loan options.<\/p>\r\n

Homebuyers can see, in advance, potential mortgage payments and interest rates. A preapproval letter will help determine possible closing costs and mortgage insurance. Include property taxes in your cost analysis. Monthly payments are not the only outlay homeowners make.<\/p>\r\n

Other Financial Considerations<\/h3>\r\n

As you gather documentation and savings, prepare to give a down payment or earnest money to secure your dream home. Earnest money is a type of security that homebuyers place into escrow<\/a> to show their good-faith intent to purchase the home.<\/p>\r\n

What Do You Want in a Home?<\/h2>\r\n

Knowing what you want in a home or community is as important as a mortgage approval. Consider the following areas as you build your lists:<\/p>\r\n