You’re Ready To Buy a Home. But are your Finances?
Monday Nov 26th, 2018Share
The real estate market is booming and for sale signs are popping up left and right. Does this have you thinking: is it time for me to buy a home? Maybe you’re sick of renting, need to downsize, or buy bigger for your growing family. While you might be personally ready to start packing boxes, its important to make sure your finances are in order before buying a home. Here are some great tips that will help you get ready to make the biggest financial commitment of your life:
1. Cuddle up to your finances. Knowing the ins-and-outs of your finances is crucial before buying a home. How much are you earning? Saving? Actually spending each month? You also need to make sure your credit score is in good condition; the better the credit score, the lower the monthly mortgage payments. What if your credit score isn’t the best? Take the time to pay off any outstanding debts before you start house shopping.
2. What can you afford? You don’t want to waste your time by looking at a house you can’t afford. Worse, you don’t want “The One” to slip away if you aren’t ready with a pre-approval. Talking to a lender to get your pre-approval is a crucial first step to the homebuying process. Make sure you obtain a preapproval that determines how much you can borrow from the lender. You want to stick to the price range of what you can afford so you don’t run into trouble making mortgage payments down the road. Remember, your mortgage payment also includes interest, property taxes, and sometimes homeowners insurance all wrapped into one. If you need help with this step - contact me any time here to help answer your questions!
3. Additional expenses. As a real estate agent, it is important to let my buyers know up front of the added expenses that come along with buying a home. Depending on the type of loan a buyer chooses, they will have a down payment in addition to the cost of insurance, property taxes, a home inspection, closing costs, moving costs, and any additional maintenance the house might need. This is exactly why you need to know what you can afford so you aren’t surprised by the extra financial obligations.
Thinking you might be ready to take the first step? I would love to help you! I specialize in helping guide first time buyers (and repeat buyers!) through the complicated process of purchasing a home. I would love to talk with you and answer any questions. Whether you are ready to pack your bags and move yesterday or you think you won’t be ready for a year - feel free to reach out to me to get your questions answered!