If you’re ready to start working toward your dream home, you need to do plenty of research ahead of time to ensure that you are getting the best value for your money. Talking with a real estate agent prior to making a purchase is always a great first step toward the process of making an offer and negotiating with various sellers.
What else should be on your house hunting to-do list? Here’s where your work should begin.
Investigate Loan Qualifications
When you are sure that you are ready to move into a home, it is always a good idea to make sure that you qualify for a mortgage. If this is your first home, there a variety of loan programs with affordable down payments; some as little as 3%. The first step is to get pre-qualified, which means that a lender will tell you how much you qualify for based on your basic income and credit information. Afterward, you can get pre-approved for a loan, which means your credit and income information has been verified as of the day it was granted.
Figure Out Your Budget
After you have figure out how much you can borrow, it is time to figure out how a loan fits in your budget. Additionally, you have to figure out how much a home may appreciate versus how much you will ultimately pay in interest and taxes to own the home. You should also figure out if you can afford to pay your other bills and pay to maintain the home to avoid become house poor. For more homebuyer information, check out the Consumer Finance Protection Bureau, HUD, or FreddieMac.
Purchasing a home is a momentous occasion in your life. Therefore, you want to make sure that you make the right choice when it comes time to close on the deal.
Content provided courtesy of First Team Real Estate.
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Extra Credit provides general information to help improve our Member’s financial lives. Every situation is different, so please contact us for guidance on your specific needs. The advice provided in Extra Credit is not intended to serve as a substitute for speaking to a loan representative, financial advisor, or BALANCE counselor who can help tailor a solution for you.
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