CLICK TO CALL (561) 683-1313
Click to Call
Good Greek Moving - Florida's most trusted movers



5 Steps You Should Take in Order to Financially Prepare for Buying a House
By The Good Greek

Ideally, you will start preparing to buy a home about six to 12 months before actually doing so. This is because there are some steps that need to be completed that may take several months or longer to complete. Let’s take a look at how you can put yourself in the best position to get the home that you want.

How Much House Can You Afford?

It is generally not a good idea to base what you can afford based on what a lender is willing to give. This should be determined by looking at your current debt payments and what you would like your monthly mortgage payment to be. Ideally, a mortgage payment will be no more than 30 percent of your monthly income.

Related: Clever | How Much Can I Afford When Buying a House?

Get Preapproved for a Mortgage

The first step in the process of buying a house is to determine how much a lender will give you. If a lender says that you qualify for a $100,000 mortgage, you can narrow your search to homes that are $100,000 or less. Alternatively, it may be possible to work on improving your credit score or reducing your debt-to-income ratio to increase the amount a lender will give.

Related: Elevate Mortgage | 3 Tips to Help You Find the Best Home Mortgage Lender

Save for Closing Costs

Generally, closing costs are roughly 3 to 6 percent of the home’s purchase price. Examples of closing costs include the down payment, document fees, and property taxes for the next year. The first homeowner’s insurance payment may also be due at closing.

Related: Value Penguin | Average Closing Costs

Pay Attention to Market Conditions

You never want to buy a home at the top of the current market. This is because the home’s value may plummet just months or years after the purchase closes. Instead, buy when there is more supply of available homes than demand for those properties.

Improve Your Credit

You need a good credit score to get approved for a mortgage at the best interest rate. Most lenders consider a good score to be 700 or higher, but you can get a mortgage with a credit score of 640 or higher. If you have a score of under 640, it may be necessary to apply for an FHA or USDA loan. If you would rather not apply for one of these loans, there are ways to improve your credit score.

Related: CrediReady | How to Improve Your Credit Score in 90 Days

If you are ready to buy a home, call a lender and a real estate agent to schedule a consultation. These conversations may help you determine if you are ready to buy a home or if it should be put off for another year or two.

Already ready to go? We can help you get ready and move into your new home! Check out our services here!

Related Post
Should I Sell My Home?

All homeowners reach a point where they face a simple question: Should I sell my home? The answer is a Read more

Important Location Factors To Consider When Buying a Home

[vc_row][vc_column][vc_column_text]Location, location, location is a cliche, but it also happens to be true. When choosing a new home in the Read more

7 Of The Most Common Moving Scams

[vc_row][vc_column][vc_column_text]If you see the signs of any these scams, save yourself the time, money, headache and regret by moving on Read more

A Checklist Of Items For Your New Home

When you move, your attention is focused on making sure all your valuable items, furniture, clothes and decorations get safely Read more

Downsizing Tips for Seniors

Moving is hard enough at any time in life. But it’s especially tough for seniors who are also downsizing as Read more

Moving? 3 Expenses You Should Be Planning For Before You Do

Moving can be a great way to see a different part of the country or explore a new job opportunity. Read more

3 Tips for Taking the Headache Out of Selling Your Home

Placing your home on the market can be a stressful event. Worries about whether your home will sell for your Read more

Pin It on Pinterest