Buying a home is a serious matter and has multiple steps that need to be taken before the dream of home ownership can become a reality. From loans to choose from, rates to look for, knowing which real estate agencies are not trustworthy and much, much more goes into purchasing a home. Heck, even deciding if you want real grass or a synthetic turf for a yard is a big decision.
The best way to figure out what to do before you buy your home is to listen to industry professionals like us so you know more of the in’s and out’s of the business and how the housing market operates. Because of this factor of needed education we have developed a list of things that MUST BE DONE BEFORE purchasing a home. Look over the list and make sure you have at least checked off the following basic elements of home ownership before making your move to purchase.
Your Credit: Very Important
Get your credit on track. Making sure that you have a quality credit score is much needed before even thinking on purchasing a home. Don’t let any one else try and convince you, you have to raise your credit score if you are going to make your home purchase work. It is said that having a score lower than 670 can result in higher fees or even a higher down payment. To make your home buying work for you, having a credit score of 700 or above is what most lenders and sellers are looking for.
Find your target price. Too often do people not set their ratio of debt to income and in doing so secure a failed attempt at home ownership. To make sure that you are staying in the clear AFTER you have figured out your ratio make sure that your monthly payments do not exceed 30% of your monthly income. If this does happen it is sure to make your home buying experience an unfortunate one.
Save up for the ADDITIONAL FEES. While most people will be thinking that down payment completion should be all that is needed when buying a home, many other expensive aspects go into that first payment. Closing costs, loan fees and other added finances can really burden new home owners, especially when they did not prepare of the added expenses.
SAVE, SAVE, SAVE. Creating and maintaining a quality savings account is a necessary aspect of owning a home. Most lenders of any amount of money want to make sure that you have a safety net just in case and want to instill in the loan company that you are not living on a paycheck to paycheck basis.
Get pre-approved for a mortgage BEFORE moving forward. It may seem silly but some people forget to do this part all together and wind up being let down on the house of their dreams because of not taking the correct steps in attaining that dream. Make sure you get pre-approved that way there will be nothing holding you back from becoming a home owner.
Buy a Home for YOU. Don’t get fooled into the quick sales of sneaky real estate professionals, make sure that the home you purchase is the one for you. Making the decision to purchase a home is a huge part in anyone’s life and should never be taken lightly. If it doesn’t seem right don’t go for it, this decision is too big to take lightly.