Is this the year you plan to do it? To take that leap and buy your first home, or your next home? It can be a little daunting, but not to worry. With a little preparation and guidance (from me!) you can find and afford a great home! Now is the perfect time to start getting ready to buy and a great time to beat the peak spring/summer buying rush. So, let’s get ready! I’m here to help with a few tips to get you prepared to start shopping.
Tip #1 – Know your credit report. Do you know what your credit score is and what your credit report says about you? If not, now’s the time to take a look so that when you’re ready to get preapproved (we’ll discuss this below) there will be no surprises. Give me a call or shoot me a quick email I would be happy to get your credit report and credit score for you (it’s just one of the services I offer to make the mortgage process easier on youJ). We can review your report together and fix any issues so you can get the highest score possible, which saves you money on your mortgage payment. If you’d rather look on your own, you can get your credit report free from the three major credit bureaus by visiting www.annualcreditreport.com. Examine your reports for any errors or issues and contact the creditor and credit bureau if you find inaccuracies.
Tip #2 – Know your financials. Before you’re ready to start shopping for a home, you need to know your numbers such as how much you can afford as a monthly mortgage payment, what you can afford as a down payment, and how much you need to save to make your numbers. I’m happy to walk you through these numbers for your situation; however, as a rule of thumb, you probably want to keep your mortgage payment at about 30 percent of your take home pay. Also, you’ll avoid paying mortgage insurance (which adds up to a sizeable chunk each month) if you can put 20 percent down on your home. With those numbers as guidance you can calculate the target home price you can afford by using useful online calculators. Just Google ‘mortgage calculator.’
Tip #3 – Get preapproved. When you are ready to start shopping for a home, let me know before you go. I can work with you to get a loan preapproval, which shows sellers that you are serious about buying and that you can afford their home. It will also help you and real estate agent focus on the right homes and save you from wasting time looking at homes you may not be able to get a mortgage for.
Shopping for and buying a home can be one of the most exciting times of your family’s life! You can avoid un-necessary stress and increase the joy of the experience by following these top tips. I look forward to helping you on your journey to home ownership! Please reach out with any questions. I’m here to help!