You may be wondering what exactly you should do before buying a home. This will likely be one of the biggest purchases of your life. Money, time, energy, and emotions are involved. There are dozens of factors to take into consideration before you take this step. To make the process more worthwhile, take time to think about exactly what you want from a home, as well as if your finances and lifestyle match the decisions you’ll be making. Don’t rush your judgment.
Get approved before you start looking
It can be fun to shop for homes and think about the possibilities of the future. But it’s not smart to look at homes that you may not be able to afford. Getting too hasty and going house-shopping before you know your budget can lead to risky decisions. Do the right thing— get pre-approved.
Be careful with your credit card
A better credit score will get you a better rate. Lenders will check out your credit and history of spending. Your credit score might be more important than you think. The thing that affects your credit the most is your payment history. So, don’t make huge purchases or do something you’ll regret right before buying your home. Something else to keep in mind is negative information. Avoid things like late payments and foreclosures, because those will bring your credit score down. Make sure your credit is the best it can be right before you’re making this powerful purchase.
Figure out exactly how much you’ll be spending
The number that your lender gives you isn’t the actual amount you’ll be paying. There are a ton of hidden costs that come with loaning large amounts of money. A few examples are property taxes, homeowners’ insurance, and utilities. The costs can add up quickly, so you should calculate any possible expenses before you decide on a house. The main thing you’ll have to worry about, though, is the mortgage. You don’t have to figure it out alone though— use our mortgage calculator to figure out what you’ll be paying in the long run.
It can be stressful to buy a home. Luckily, we have methods to help you along the way. Check out our website for tools, information, mortgage quotes, and more.