5 Easy Steps to Get “Financially Ready” to Buy Your Dream Home
Buying a home is definitely not a walk in the park, but with the right preparation and an experienced Coldwell Banker Gosslee Agent - it could feel pretty close!
Today we wanted to share what you need to do to, financially, to start on your journey to homeownership (and be successful while you are at it)!
1. CHECK YOUR CREDIT & ORGANIZE YOUR FINANCIAL DOCUMENTS
You’ll want to know where you stand so you are prepared for what impact your credit could have on getting approved for a mortgage. It’s important that you’re aware of any potential errors on your credit report and that you can take the steps needed to fix them so it doesn’t have a negative effect on your ability to qualify for a mortgage.
2. PAY DOWN AND AVOID NEW DEBT
Pay down as much of your existing debt as you can and avoid taking on any additional debt that isn’t absolutely necessary. It’s best to wait on spending on any major purchases and instead focus on how much you’ll need for a down payment on a new home.
You can buy the new car, washer and dryer, and that new sectional you have been eyeing after you close on your home.
3. STAY AT YOUR JOB
If your job history has been unstable or you switch careers shortly before getting pre-approved, it could hurt your chances of qualifying for a mortgage.
In fact, many mortgage companies have a requirement as to the length that you have been at your current job so check in to see what they expect of you as far as that goes. All are different and have difference guidelines.
4. FIND A REPUTABLE LENDER AND GET PREAPPROVED
You'll want to talk to a lender to find out not only what you can afford but how much your closing costs will be, what interest rate you’ll be at, and how much you’ll need for a down payment.
Also, keep in mind the costs of moving itself. You don't want to use every penny on your down payment and then have nothing left over to actually move you into your new home.
5. KNOW WHAT YOU CAN ACTUALLY AFFORD
The amount you are approved for is oftentimes more than buyers feel comfortable spending. You have to think of what other priorities you have so that you don’t max out your budget on your house.
Remember: You want to enjoy your home, but you also want to enjoy everything around it. Eating out, shopping, concerts, community activities - you'll want to have money for that so don't buy a home at the top of your price range.
If you or anyone you know if considering purchasing a home, give us a call! We can guide you through all of these steps and get you in to the home of your dreams in no time!
Bossier City Office 318-747-5411
Shreveport Office 318-861-2461
Visit us online www.cbgosslee.com
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We look forward to hearing from you!