Are you ready to buy a home? While some would say no one is ever really ready, we think there are things you can do to prepare. After all, buying a home is a big first step towards financial security and well-being – if it’s done right.
We’re here to help you decide if you’re ready. Here are a few questions to ask yourself, and some steps to take before you start looking at homes.
1.What’s Your Timeline to Buy a Home?
Do you plan to live in your new home for at least three to five years? Owning a home is a long term commitment, not a short term investment.
2. Get your Finances in Order
Financial preparation includes steady employment, a good credit score, cash for a down payment and/or closing costs, plus reserves. These are basic requirements to obtain a mortgage and provide a cushion to help with repairs and maintenance.
3. Review Your Budget
Determine how homeownership will affect your finances. Think about monthly mortgage payment as well as taxes, utilities, HOA/condo fees, maintenance, etc.
4.Know your Credit History.
Get a copy of your credit report. Check for any errors in your credit history six to twelve months before you apply for a loan. It takes time to make corrections to any errors you spot.
5. Determine your Preferred Price Range
Guideline: your total housing expense (mortgage principal, interest, taxes, insurance and other fees) should not exceed 28-30% of your gross income. Save enough cash to make a minimum down payment, as well as all or a portion of the closing costs.
6. Compile a home Wish list.
How many bedrooms or bathrooms do you need? Is a particular school district important? Do you want access to public transportation? Do you need a large yard? Be clear with your real estate agent about your priorities for your perfect home.
Fast-Track The Process to Buy a Home
Are you ready? Don’t worry if you didn’t do all of these things – like checking your credit six months ago. We can help you get this process moving along quickly.
First, we can put you in touch with a number of great local lenders. They can get you approved for a mortgage and let you know how much you can afford.
Second, we can sit down with you to create a wishlist and location preferences. We’ll help narrow your search to try to show you exactly what you’re looking for. We can create automated searches to let you know the second a new home in comes onto the market.
It can feel overwhelming at times, but we can say from experience that it’s worth it. Let us help you navigate the process from start to finish.