Buying a home is an exciting endeavor that is a huge decision. With the rise in rental rates, many are opting to own instead of rent. Below are six key ways to prepare for the purchase of your first home.
1. Create a comfortable monthly budget estimate.
When deciding on a comfortable mortgage amount its important to look at a breakdown of your monthly spending. A conservative estimate of your mortgage payment only should only make up around one third of your gross monthly income. This amount will allow you to comfortably manage your other finances.
2. Check and build your credit score.
Utilizes free credit score websites like Credit Karma to receive data on your credit score. Manage current expenses and pay off past bills. Building and maintaining your credit score will allow for a smooth loan process and potentially build your pre-approved rate!
3. Research loan options that work for you.
There are several great options for homebuyers. USDA and VA options require no money down and are great options for those that are looking to purchase their first home. Other options, such as FHA and Conventional home loans, offer low down payment percentages making the home buying process affordable and achievable. Speak with your mortgage officer to determine which program is best for you.
4. Build your savings.
Even with low and no money down options, it is important to build a healthy savings account. Closing costs are typically around 3%-4% of your homes value and are also a component of your cash to close. While your realtor may be able to bundle in a closing cost credit into your offer it is always helpful to have the amount ready. This may lead to a stronger offer in a competitive market.
5. Get Pre-approved.
Provide your mortgage officer with documents needed to start the pre-approval process. These items may include tax documents, proof of income forms, and bank account information. Having the necessary documentation will lead to a faster approval.
6. Select a Realtor that you can trust.
Finding a great realtor is key in a successful transaction. It is important to find a realtor that moves at your pace and is honest with you about the process. Your realtor should not be pushy to move the sale but they should be knowledgable about the market and keep you up to date on deadlines and milestones for the transaction. Our real estate team is proud to reflect this service to our homebuyers while providing them a credit to go towards their closing costs. To learn more about our services visit www.agentchase.com
There are several great ways to prepare for the home buying process. We hope that these 6 simple steps will bring you success with your endeavor.
If you have any questions about the home buying process please feel free to reach out to Smruthi and Jeff Boyer at different@agentchase.com
Happy Home Buying!
Jeff and Smruthi are husband and wife Real Estate Team proudly serving Jacksonville and surrounding. They offer homebuyers closing cost assistance allowing them to save. For those looking to sell; AgentChase provides competitive flat fee listing options while providing unbeatable service.
Are you looking to buy or sell? Contact us today at 904-513-8575 or send us an email at different@agentchase.com
