You’ve day dreamed about walking up to your front door, turning the door knob, and stepping across the entrance into a place of your own. The start of the new year and you are finally ready to make the commitment to purchase your first home. Here are a few tips to help reduce the stress as you get ready to become a homeowner.
Start a house saving fund-You’ll want to have a decent-sized down payment already set aside before you start house hunting. Aim to have at least 20% of your home’s purchase price saved, so you can avoid the added expense of private mortgage insurance (PMI).
Fix your price range–Buy a home that’s less than 2½ times your annual income. When you look at the amount you can afford to pay, include all the expenses that come with owning a home: taxes, utilities, maintenance, plus any home improvements you may want to make.
Polish your credit history–Request copies of your credit report before starting your home search. Make sure your credit history on the reports is accurate and work to fix any problems that you find. A clean credit history puts you in a stronger position to get a mortgage and helps make you more attractive to sellers.
Prepare with preapproval-Work with a mortgage lender or bank to get pre-qualified – for a mortgage loan. You—and the owners of the home you’ll potentially buy—will know that you’ve been approved. You’ll also have an idea of what your monthly payments will be, minus any taxes or fees. Be prepared to provide some detailed financial information about yourself—along with a co-purchaser, such as a spouse or partner, if you’ll have one. If you own your own business, you may have to provide several years’ tax returns to verify your income.
Call us today and we can refer you to you an excellent lender. They will help and assist you as you take the leap to becoming a homeowner in 2018. (661) 615-9001