Plan for the Future!

Whether you are planning on purchasing a home this year or in the future, proper preparation can make the process smoother, less stressful and more successful.  Before you start browsing the internet to find that perfect home, it is important to take a few key steps to ensure you are financially ready and searching inside your means. No one wants to fall in love with a home only to find out it is out of reach financially.

Talk to a lender early. The first step is speaking with a lender or mortgage professional.  A lender can help you understand how much home you can realistically afford, explain loan options, and outline expected monthly payments. They will review your credit score, down payment, and income. There are many loan types and programs available.  Can you qualify for a loan, or do you need to take time to improve your credit and save a down payment?   

Improve Your Credit Score. Your credit score plays a major role in determining your loan eligibility and interest rate.  Making payments on time, paying down debt, and avoiding new credit inquiries can help improve your score. If you don’t have a credit score yet, visit with your lender on how to responsibly build your credit. Even a small increase in your credit score may lead to better loan terms and savings over time.

Saving for a down payment is one of the biggest financial steps in buying a home. While some loans allow for lower down payments, having more saved can reduce your monthly payment and may eliminate private mortgage insurance (PMI). In addition to the down payment, plan for closing costs, inspections, and moving expenses. Setting up a dedicated savings account and creating a budget can help you stay on track.

Budget and Expenses. Take a close look at your monthly budget. Consider not only the mortgage payment, but also property taxes, insurance, utilities, maintenance, and potential homeowner association fees. Understanding your true housing costs will help you buy confidently without stretching your finances too thin.
Needs and Goals.  Think about what you want in a home and how it fits your lifestyle.  Consider location, commute times, schools, size, and future plans. Knowing your priorities will help narrow your search and keep you focused.

Work with a Real Estate Professional.  A knowledgeable real estate agent can guide you through the process, answer questions, and advocate for your best interests. From understanding market conditions to negotiating offers, professional guidance can make a significant difference.