Buying

Your Guide To Buying A Home

Share This Post:

Are you finally ready to move out of your apartment and buy your first home? Here is a little handy list to prepare yourself for when you decide to take the step and buy a home.

Credit Score

This is a crucial first step you should take when you are considering buying a home. Why is this important? Your credit score basically shows how dependable you are paying your bills – which directly affects the interest rate on your mortgage and the amount of your monthly payments. A good credit score ranges around the 700’s to high 600’s. Most lenders require a minimum of about 625 for a mortgage. If your score is not too high, it’s a good time to start trying to lift those numbers – pay off any debts, make sure you have not missed any bill payments and do not apply for too much credit.

Save Up

We are sure that everyone at this point knows that homes are not a cheap investment. Especially with how the market is these days, it’s easy to say that buying a home might be the biggest purchase you will ever make. So, before you take the plunge, give yourself some time to save up a bit. Avoid buying things over budget or that you cannot afford.

Create A Budget

Now is also a good time to actually start a budget. This way you can also have a layout and see where you’re spending your money. From paying off student loans to groceries you’ll be able to also know how much you should be spending each month. Mortgage payments are not the only thing you’ll be saving up for – there are also repairs, homeowner insurance, and taxes. Keep your budget in mind when you’ll be looking at homes. As a general thumb rule, you should be looking at home prices that are two to three times your annual income which helps ensure that you’re not taking on a larger mortgage commitment than you can afford.

Find A Great Lender

It is a good time to find a mortgage broker. You’ll be able to find out how much purchasing power you have and what kind of home you can afford. Talk to credit unions, local banks, and other financial institutions. A lender will be able to answer your questions and educate you on the process of getting financially ready to purchase a home.

Get Pre-Approved

You should get pre-approved, not only pre-qualified. This means that your mortgage broker knows concretely that you can for a fact afford a home based on the financials you have provided. The financial aspect of owning a home is obviously a huge one, so to avoid any possible additional stress in buying a home, it’s best to be prepared!

Find Yourself An Amazing Realtor 

If you want someone to help you find your dream home, find a great realtor. Realtors have great knowledge and when you find the right one they will understand what you’re looking for and match you with your home. With your realtor you’ll be able to search neighbourhoods and take into account what you’re looking for in a neighbourhood – schools, close to work, etc. To fill them in on what you’re looking for brainstorm a list of what you absolutely must find in a home—and which features are simply sweet extras. Finally, with your realtor, you’ll be able to look at homes and attend open houses to find your dream home!

Put In An Offer

Once you’ve fallen in love with a property that meets your needs, discuss with your realtor and put in an offer. Your realtor will fill you in on all the details and provide you with all the rest of the steps. Once your offer is accepted, you can get ready to greet your new home!