Thinking About Buying A Home?

Want to buy a home but don't know where to start? I would NOT suggest starting by looking at homes. There are several other decisions to be made first, budget being the most important.

1. Budget. You need to sit down and really put the pencil to the paper here. What are you currently paying for rent or mortgage? Are you anticipating a raise in salary to factor in? Will childcare or schools play a role in your budget? Will drive time to work factor in or can you work from home lowering work expenses? You need to also factor in taxes and insurance in your payment budget, in our area we have a 2-tiered tax system. In some areas you will pay City and County taxes but everyone pays a County tax depending on the county you purchase in.

2. Credit rating. Have you credit pulled by a reputable local lender. Credit Karma and other online options are good but they are not the entire picture and will not be accurate. Having your credit pulled takes about 15 minutes to fill out the application and another hour or so for the lender to look over the report. This is generally a free service and well worth the effort. I see about 40% of borrowers credit reports are incorrect. Some common issues are debt that is still on the report that has been paid off, ex-spouses expenses still attached, common names of other peoples credit on your report. Take the time to clear these things up so your credit score will be correct. Your purchase power is based on your debt to income and your credit score. Your lender can then give you a purchase price to search for.

3. Ready? This is where I come in! Now let's sit down and formulate a moving plan. Before you head out to look at houses you need to know when your lease expires, is there a clause in your lease that says you have to buy out your lease or give 30,60,90 days notice? How long will it take you to pack up? Do we need to co-ordinate with end or beginning of school years? Lastly and the most important. What is going on in the local market. Is inventory low, are there multiple offers on properties, are prices rising quickly? Everyone's moving situation is different and no 2 purchases are alike so let's make your move smooth!

Post a Comment