If you’re thinking about buying a home, you could be making a great decision for your future. However, before you commit to buying a home, you’re going to want to look into a couple of things to make sure you’re making the right choice.
To help you make a well-informed decision and avoid any mishaps in the home-buying process, check out this checklist before you get started:
Find the best loan for your situation
Don’t forget that you’ll be paying for your home for a while, so whatever loan you choose, make sure that you pick one that has the best rates for your needs, as well as terms. There are a large variety of loan types for various situations, such as Texas VA loans, Washington VA loans, FHA loans, or a mortgage tied in with bank statements, so make sure to shop around before you say yes to a lender. This process should start before you start looking for your home. Finding the right mortgage broker or lender is key to your success as a home buyer.
Consider how much home you can actually afford
You want to be sure you’re buying the home you can pay comfortably. What can happen in many situations is that people get excited about a home and shoot for the stars on a home that will make them “house poor.”
Paying for a home that is, in reality, out of budget can be detrimental to your financial health, as you end up with your income tied up in your home, with little else to work with. It’s okay to buy a home within your means, as you could end up selling it for a lot more later on and eventually find your dream home.
Think about if you can pay a larger down-payment
If you’re looking for good terms on your loan and great rates, something that can help you out is to pay a larger down-payment than what is required. However, this requires you to plan ahead. The larger the down-payment, the more you’ll need to have in savings. If buying a home is in your future, set up that savings account today and work on setting aside money on a monthly basis.
Work with realtors who know their craft
To find the home you want, at the right price, in the right neighborhood, etc., it will take a special kind of realtor. You want to work with someone who knows the city market well and who can also provide you with the insights you need in the area. You’ll want to know you can trust them and that they have your best interests in mind, so you find the new home you’re dreaming of. Ask friends who found great living situations and make sure to do research on any realtor you work with.
Check your credit
Before you can get approved, there’s a very important thing you’ll want to look into: your credit. If you have a ‘needs work’ credit score or anything below an excellent score, it could be more challenging (although not impossible) for you to be approved for the home you want. If you’re planning on buying a home a few years down the road, start cleaning up your credit today. If you haven’t started healthy credit card usage yet, today’s a great day to get started towards possibilities for your future.
Buying a home is exciting, but to make sure you’re making the right choice for your financial future, do your research. Before you think you’ll be able to buy any home on the market, look into your finances.
Before anyone is ready to buy a home, there are things to consider before you actually set out to get approved by a lender and look for a realtor. These tips above can help you prepare, so when you find your perfect home, you’re ready to make it happen and receive all those wonderful housewarming gifts.