Q: What is the first step of the home buying process?

Getting pre-approved for a mortgage is the first step of the home buying process, you’ll then receive a pre-approval letter from a lender that will come in handy when you’re ready to get the ball rolling in the right direction.

Q: What kind of credit score do I need?

Most loan programs require a FICO score of 620 or better. Borrowers with higher credit scores represent less risk to the lender, often resulting in a lower the down payment requirement and better interest rate. Conversely, home shoppers with lower credit scores may need to bring more money to the table (or accept a higher interest rate) to offset the lender’s risk.

Q: How do I determine how much my house is worth?

Many times, people inflate the price of what they think their house is worth based on their personal perspective. However, it is important to try and keep your own opinion to yourself when determining how much your house is actually worth.

The amount your house is worth depends on multiple factors including its size and the neighborhood. To get a good idea of how much your house is worth, you should compare it to similar houses in your area. There are also helpful home evaluation tools to use online. Simply type in your address and it will track your home value.

Have questions? Email me at dlip@kw.com