Before you buy a home, you want to make sure you’re ready. That is why we came up with a list of 5 crucial things you should do before you start looking for a home:
- Ensure you have a strong credit score
- One of the most important things to get lower monthly payments is having a strong credit score. Without a good credit score, you will have a difficult time getting a good mortgage, so make sure to check your credit score before you begin to look for a house
- Calculate what you can afford
- Calculate your debt to income ratio, meaning look at what is economically feasible for you with the amount of income coming into your household. You do not want to take on a huge debt with a mortgage if you cannot handle it in addition to your other expenses.
- Set up a healthy Savings Account
- Begin saving your money in a savings account. You should have enough money in this account for a down payment on your dream home as well as the closing costs including loan and lawyers fees. Most people do not think about these costs, but it is important you have enough to cover everything for buying the home in your savings.
- Get Pre-Approved for a Mortgage
- You can improve your chances of securing your dream home by making sure you have financing in place before you even walk through the door. This documentation is a necessity, so it is best if you have it done before actually going to look at houses. It’s better to know what you can afford rather than walk into a home, fall in love with it and later find out that you cannot get a mortgage for its price.
- Find out what you like
- Before going to houses, fin out what you like in homes. This gives your Realtor a better idea of what types of homes to start you out in and it allows you to narrow searches online in IDX searches. There are many houses on the market so having a good idea of what you are looking for will help put your Realtor in the position of getting you to your dream home sooner.