9 Things to do FIRST-Preparation

Preparation

These elements will help you make the most of this lesson

Purpose

You will be able to explore and decide if you are ready to buy a house or if you need to take some additional steps before looking, based on your current financial situation.

Benefit

Home ownership will give you the joy and pride that comes with putting down roots and starting to build your financial wealth.

Key Terms

Flip the cards to learn these important terms.

Credit Score

A credit score is a numerical representation of your credit report, using information sourced from credit bureaus to determine your creditworthiness (the extent to which you are considered suitable to receive credit).

Realtor

A Realtor is a licensed real estate salesperson who belongs to the National Association of Realtors, meaning they are held to a higher ethical standard and must follow a specific code of ethics. Not every real estate agent is a Realtor.

Mortgage

A mortgage is a secured loan from a bank or other financial institution that is used to finance property and help you purchase a home.

Prequalification

Prequalification is the first step in purchasing a home, where a credit has reviewed your creditworthiness to determine if you’re likely to qualify for a loan and for how large a loan.

Preapproval

Pre-approval is the second step in purchasing a home, where a conditional commitment is made by the bank or financial institution to grant you the mortgage.

Credit Report

A credit report is a record of your credit history. Think of it as a report card that pulls data from sources like your bank, credit card company, collection agency, government, etc. that helps lenders decide whether or not to work with you.

Remember Dominic?

Now that he can afford to buy his first home, he is starting to take the first steps towards that goal. He has been envisioning what he would like in his first house and he has a long list. Because he does not really understand the home buying process he is stuck and not doing anything. Work through this lesson with Dominic and help him decide what he should do next.