You’ve thought about buying a home…you’ve searched a few things and still just aren’t sure where to even start. This will likely be the most expensive purchase of your life. But, don’t get overwhelmed. I’ve broken down the home buying process into four parts. Let’s dive in.
Ok, so who am I and why should you listen to me? I’m Maranda, Realtor® with Tailored Real Estate and eXp Realty in Denver North Carolina 28037. I’ve helped buyers through the entire process of buying a home and have professionals of all things real estate by my side and eager to help.
Buying a home is nerve racking, as it should be. It will be one of the most expensive purchases in your life…
One step at a time = big results, less stress. You must start with the end in mind to know how to get there. These steps are finding out the “where” so you can find out “how”
Do you even know how much home you really can afford? Do you even know if you can get approved for a mortgage? It’s important to know this before spending your time scouring the internet for your new home.
- Decide Whether you’re ready to buy
- Meaning, pre-qualify yourself before searching for a home or comparing mortgages
- Be sure you have at least 2 years employment history – this shows lenders that you have stable and reliable income.
- Know your debt to income ratio
- Lenders typically like to see less than 36% and no more than 28% of your income going towards housing expenses.
- Check your credit score – a credit score of 580 or higher is ideal. Although some loan programs allow for lower credit score.
- Meaning, pre-qualify yourself before searching for a home or comparing mortgages
- Set a budget and calculate how much house you can afford
- Owning a home has a higher cost than renting. (yearly property taxes, maintenance costs, insurance, etc.)
- For Simplicity: Use this calculator from Nerd Wallet to find out how much house you can afford.
- Start saving for your closing costs and down payment
- Plan on saving 3-6% of home purchase price for closing costs. (*This does not include your down payment)
- Many have the misconception that they need 20% down to buy a home and that just isn’t the case.
- There are loan programs you may qualify for require as little as 0 (zero) down!
- I like to advise to save at least 3.5%-6% for a down payment.
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