Let us help you get started with your home buying process.
Whether you’re ready to make your purchase right now or if you’re still just shopping for your future home, understanding the process is paramount.
Are you Ready?
Purchasing a home is huge commitment. Before you start comparing rates or house hunting, take some time and look at your current situation. Are you ready for how it could change your current circumstances?
Think to yourself:
- Are there any major life changes on the horizon for you or your significant other like starting a family, changes in your career or other things that could impact your finances?
- Is your income currently stable?
- Is staying in the same house for at least 5 years a possibility?
- Are you prepared for the responsibilities that a house brings like repairs, upkeep and more.
Consider your financial situation and put together a budget
Buying a home will most likely be the biggest purchase you make. As a result, being sure that your finances are in order is essential. Begin by going over your billing statements and back accounts to understand how much money you’re making and spending each month. If your goal is to buy a house with someone else, like a spouse or significant other, be sure you know their finances as well.
- Are you willing to make a budget and save each month to reach your goal?
- Do you have a stable income or career?
- Do you have a strategy for managing debt like car payments and student loans?
- Do you have capital saved for emergencies? (The general rule of thumb is 3 months of income)
- Do you have money for the down payment and closing costs for the property?
Explore what your Loan and Mortgage Options Are
Don’t let the Loan Process intimate you! We have the experience and know how to guide you through the process of both choosing the right loan and getting the right loan. Below you can find this explained.
There are a wide arrange of loan types for a bunch of different needs and situations.
While it’s important to understand your finances and put together a budget, understanding your financial goals is hard without knowing what you’re trying to afford. Getting approved for your mortgage first will help you figure out what your monthly payment would be.
What does “Getting Approved” Mean?
Getting approved means that, based on the financial information you provide, a lender has decided and believes that you’re a good candidate for a mortgage. Once approved, you will normally get your interest rate, an estimate of your loan amount and what your monthly payment may be. This process can change depending on the lender but it is often referred to as “preapproval”.
This “preapproval” will put you in a better position when negotiating for a property because the buyer already knows that you know your finances, help your real estate agent better know what you can afford and helps lessen any surprises that could slow down closing the loan.