First comes love, then comes marriage, then comes a bigger home to fit all these new members of your family!
Whether it’s your starter home or your forever home, there are a few things you should know before purchasing. If you’re expecting, adopting or you’ve already welcomed a few little ones into your crew, it’s understandable that you’re ready to quit renting and settle down.
Knowing that you’re wasting your money each month on a place you’ll never own can be extremely frustrating. Then you add all those diapers into the mix, and you’re close to irate, don’t forget sleepy, too!
We’ve got some action tips you can start doing now to help you on your homebuying journey.
Tip one – it’s never too early to start saving.
You might think that the scariest part in this journey is not knowing how much you can afford. Well fear not, you have options. Some loan programs don’t even require a down payment while others require a small percentage, 3% for example. But, there are other costs involved like closing costs and earnest money deposit. Not to mention that if you have some money in the bank in general, it reflects well on you when you’re pre-qualifying. Saving some cash is a good thing, if you need help budgeting to put aside that money we can help with that, too.
Tip two – get your credit in order.
This tip might sound like a no-brainer given that qualifying for a mortgage really depends on that credit score. But, you’d be surprised how many people come into homeownership thinking that they have excellent credit, when they do not. By taking a look at your finances, your debt, what goes out and what comes in on each month’s paycheck you’ll get yourself ahead of the game. Paying down that credit card and not just the minimum payment helps!
If you’ve checked your credit score recently and you want to get in a better place before applying, that’s okay too! Knowing your score before you come to the table, ensures that you’ll have a leg up. But, understanding your credit score and what you can afford is not always easy. That’s where we come in! We can help get you in better standing to buy but starting early here is key.
Tip three – do your research on the front end.
As we mentioned before, you have options when you’re looking for the perfect loan for you and your family. You might not know what conventional, VA, FHA loans mean, but do a little bit of ‘home-work’ beforehand that way when the time comes you have an idea about which loan you might be interested in.
One other big thing, a very big thing, is understanding the current interest rates. This will determine how much interest you’ll pay overtime. I\It’s no secret that locking in a good rate is crucial.
Tip four – get pre-qualified.
By applying for a loan, you’ll get an exact idea of just how much you can afford. Why waste your time going to look at open houses if you don’t know exactly how much you can spend? Applying can take less than an hour, and it’s so worth it to know how much you can afford and save you that extra time.
Tip five – find your REALTOR®.
You might already have someone in mind, a family friend or relative. It’s important to have an open line of communication with your real estate agent so they know your must-have list, where you’re able to be flexible and what you absolutely don’t want. Your agent should be able to assist with finding your dream home. They are the experts in the industry, so they have a large knowledge base of the neighborhoods in your area.
By having that open line of communication, they should get you on the right path to find your potential home and they have the tools to negotiate to get you where you need to be.
With all these simple tips, you’ll be a homeowner in no time. But, if you find that you have any questions before beginning because... pregnancy brain or information overload, we’re here for you!
