The Ultimate Buyer's Guide 🔥 (Download the Free PDF)
Owning a home is one of the major accomplishments Americans expect to achieve in their life. It provides financial security, a solid investment, tax benefits and the ability to stay in one place for years
Before you start looking at houses, you have to be sure your finances are in order. The process of saving and making strategic financial decisions to ensure your credit history is more appealing to a lender and it can take more than a couple months if you haven’t already been working on having your finances in order.
1. Credit History
You may have credit card balances to pay off or a few missed student loan payments from a couple years ago. You may also simply need more time to pass from a recent borrowing mistake. The more time that passes from the last blemish on your credit report, the less likely a lender is to consider it a red flag to give you a loan.
2. Determining Your Price Range
The pre-approval process, which entails full documentation and a credit check, is the best way to determine the numbers that are right for you. Early in your search, you can identify any potential hurdles and focus only on homes that fit your desired price range.
3. Savings for Expenses
Buyer fees will commonly add up to about 2-3% of the sales price, while the seller’s fees will usually be about 8-8.5%. Take in consideration extra expenses such as maintenance and additional costs that may come up once you become a homeowner.
4. Professionals to Consult
A real estate agent is a great way to start. We can help you find a lender that fits your financial needs, a title insurance representative, a home inspector and even help you find trusted and proven vendors should you need to do a repair in your new home-to-be.