Steps to Successful Home Buying
Preparing to Buy a New Home
Buying a home is one of the single biggest investments that you will make in your life. It’s exciting and once it’s done and you have closed on the house you get a feeling of accomplishment. The purchase of a new home brings an amazing feeling of success and fulfillment.
Getting to the point of purchasing a home can be kind of like running a race in the fact that you can’t just pick up and run the race all of a sudden. There are some steps that you need to take in preparation for the race.
There is some homework that needs to be done to get to the home buying position. Yes… I did say homework. I know how much you hated homework in school but don’t worry this homework assignment will be well worth it once you sign those closing papers.
Here is what you need to do to solidify steps to successful home buying experience.
- Boost your Credit
Having a Credit score of 665 and above will help you avoid fees and a huge down payment. Making sure that your credit score will also allow you a lower interest rate which means you will pay less over the course of the loan.
- Build up your savings
Saving in preparation for your new home is an important key to buying as well. Having 5 to 6 months of mortgage payments saved makes you a better loan candidate. It also fairs well with lenders like FHA when they see you have some cushion before buying. Also don’t forget that have a home means that you will be responsible for upkeep and emergencies like roof leaks or AC system failure.
- Save for your down payment
Based on financing and maybe first home buyers’ benefits you will be looking at a down payment anywhere in the ball park of 3 to 20 percent of the homes price. The key here is to save as much as possible. This also leads to our next key assignment.
- Find out what you can afford
When planning to buy a home it’s important to assess how much house you can afford. If you are planning on using FHA for example, this requires that your monthly payment not exceed 31 percent of your monthly income. There are also loan and payment calculators that you can find if you google them to help you figure out how much your house payments will be based on the price.
Buying a home is very exciting. Following these simple tips to buying can help you complete your race.
For more TIPS on Home Buying, Saving, improving your Credit Score and ways to find out how you can get rid of your debt quickly, make additional income and get Financial Information and contact a Financial Coach leave a comment and we will be happy to help you.
Happy Friday!!
See you next week
