Searching for your first home can be a very exciting adventure. You may have visions of open spaces, empty rooms just waiting to be decorated, hot tubs for relaxing, and lawn parties with all your friends dancing in your head when you think of buying your first house or moving to a larger one. It's great to let your imagination soar because you should envision what you want and need in a home. Before you start a serious search for a home, be sure to take these steps to ensure you're financially ready to buy real estate.
Step 1: Save for an Adequate Down Payment for the House You Want
You need to have a down payment on the home you want to buy. That's typically not negotiable, and if you do find an exception to that rule, you will likely have to pay in some other way for skipping this step. Make things easy on yourself and prepare for a smoother home buying experience by saving for the down payment before you start house hunting. The larger the house, the bigger the down payment typically needs to be because it's based on a percentage of how much you pay on the home.
Step 2: Ensure That You Have an Emergency Fund for Homeowner Emergencies
Once you transition from being a tenant to a home owner, gone are the days of calling up your landlord when you have a plumbing issue. As a home owner, you are responsible for repairs and other inevitable emergencies that come with living in a house. You need to be sure that you have an emergency savings account that will enable you to easily cover unexpected expenses without sacrificing other necessities.
Step 3: Order a Copy of Your Credit Report and Your Spouse's Credit Report
It's important to know where you and your spouse stand when it comes to your credit score and credit rating. Your credit score can have an impact on whether you are able to get a mortgage, how much mortgage you are able to receive, what your interest will be, and possibly even what your monthly payment will be. If either you or your spouse has poor credit, it's important to rebuild it to give yourself the best possible chance of getting optimal financing on a home.
Step 4: Get Preapproved for a Mortgage or Other Home Financing Option
It can be devastating to choose a dream home only to discover that you cannot get the financing for it. You can solve this problem and feel comfortable searching for a home when you get preapproved for a mortgage. Don't just trust an offer in the mail, either. You want to select a reputable bank, and then work with the financial institution to ensure that you are preapproved for a home loan. You will likely be able to determine how much you can afford to pay for a home at that time.
Finally, keep in mind that every home buyer is taking a gamble to a certain extent. You cannot foresee the future, but you give yourself the best possible chances for success when you plan carefully and set yourself up for success. Make sure that you take all these steps before moving forward in the search for your dream home, and you will feel a greater peace of mind when you are ready to make an offer on a house.Share
13 April 2017
Have you recently found out you’ll soon be moving to a new location? Perhaps, your employer is transferring you to another branch of the company in a different city. Or, you may need to move near a family member in order to take care of him or her. Regardless of your unique situation, you might worry you won’t be able to find a wonderful place to live in your new city on your own. Consider hiring a reputable real estate agent to help you with your house search. This professional should have in-depth knowledge about your new area. On this blog, I hope you will discover the many advantages of hiring a real estate agent during an unplanned move. Enjoy!