This is Why You Get Your Finances in Order Before Buying
Like with any major purchase, you need to be able to understand what steps to take to buy a home you want. Getting all of your finances in order is crucial to making sure you can afford to actually buy a home. Here are some ideas of what you should gather to prep yourself.
Check Your Credit Report as Soon as Possible
Your credit report is going to be very important. It can make or break your chances of getting a home loan. Check your credit score to see that everything that is listed, is in order. If you come across any errors, you will need to get them corrected quickly. Take the time that you need to get your credit score at a decent level before starting your search.
How Will You Handle the Downpayment?
Consider the down payment
next. While there are some loans that will actually let you pay a low down payment, go ahead and save as if you will have to pay the average 20%. If you can save more than that, then go for it. It is better to save more than you think and possibly have some left over after paying.
Figure a Rough Estimate for Your Mortgage Payment
Research your mortgage payments. Use online mortgage
calculators to help you determine what your mortgage can possibly be. If you have an idea of the home that you want then you have a starting number that you can work with when use the mortgage calculator.
Money for the Closing Costs
Save for the closing
costs. Since a good portion of the money you save will come up around the time you close on a home, you should set aside a separate fund for the closing costs. Keep in mind that you will need to pay any taxes and fees that are needed, as well as home inspection
and attorney costs.