Financially Buying A Home

Are you ready financially ready to buy a home? Check out these tips to prepare for buying your first home, or maybe even upsizing.

• Have you put together a down payment and closing costs? You will need at least 3% down for the down payment plus closing costs. More money down will help with a lower monthly mortgage payment. 20% down will eliminate the PMI, which is an added insurance if putting down a lower down payment.
• Do you have at least 2 years of steady employment history?
• Can you afford the mortgage payment plus upkeep costs associated with homeownership?
• How is your credit score, do you have a credit history showing your credit worthiness? (Credit cards, loans, bill payments)

Make sure you plan on the future. Anything that will make things harder to afford the mortgage? This might include an addition to the family, lifestyle changes, family support, etc.

• If needed, are lifestyle changes such as giving up vacations, dining out less, or getting a new car something you are willing to do?
• Have you made a list of all the costs of home ownership, such as repairs, upkeep, taxes, furniture, & utilities?
• When making a future budget, are you considering how a growing family needs might change?
• Is there room in the budget if future plans include a wedding or a college education for yourself or your children?

Now that you know the pros and cons of homeownership you can make the correct decision for you and your family.

Once you have a grasp on your spending and budget, it is now a good time to get pre-qualified. A loan specialist can help you know how much you can afford and home sellers like to make sure that you are not wasting their time.