The time has come and you are ready to buy. Before you jump in and start searching, check out the following tips to prepare your budget and guide you to a successful home purchase in the future.
Reduce Debt & Increase Credit Score Before you start looking for your next home, request a credit report. This will give you a good starting point on understanding your credit score before you request a loan.Your credit score will influence the interest rate of your loan.
Save Money to Set Yourself Up with a Large Down Payment While it is possible to purchase a home without a 20% down payment, it’s best to get as close as possible. This will allow you to have a smaller mortgage payment, avoid PMI, and receive a better interest rate. If you do not have 20% for a down payment, you may qualify for a VA or FHA loan.
Keep a Conservative Budget It’s not just the list price that is included in the purchase. Keep in mind there are inspection fees, earnest fees, moving expenses, and typically new furniture purchases that you should prepare for in advance. Along with the initial moving expenses, you should also be aware of your monthly budget moving forward. With homeownership comes property taxes, HOAs, home repairs, and more. Make sure to know what your future budget will look like.
Get Preapproved A preapproval will make your offer more attractive to a seller than a buyer who is not prequalified. Your preapproval is based on your actual income, debt, and credit history.
Set Your Home Buying Budget By getting your finances in order and obtaining a preapproval before your first home search, you will know the price range of homes you can buy. It is important to set a realistic budget that fits your income level and characteristics you want in a home.
Find an Agent You Trust An agent will be able to guide you along the way and educate you in the home buying process. Also, keep in mind an agent is well connected to the other real estate professionals in the area and can search for homes that may not be on the market yet. As you begin the process to find your next home, checking these items off your list will provide you with a more successful home buying experience. Our team is here to help you! Let us know the area and/or neighborhood you are looking to live in, along with your top preferences. Together we will find your next home! Contact us today at928-723-3030