Real Estate Insight

Things to Do Before You Buy

Before you start looking for a home, there are several things you should get in order.

1.  Get yourself financially prepared.  For the first time buyer, this may be the single largest purchase.  Evaluate your financial situation and create a budget.  This will determine how much mortgage payment you can afford. Pay down debt if possible to free up more income for the mortgage payment. 

2. If possible save for a down payment.  A 3% down payment is the minimum and all can be gifted funds. 

3.  Remember  a paper trail is needed for your funds.   Be sure to keep 3 months bank statements to show the funds have been in your account.

2.  Get pre-approved for a mortgage loan.  This will help determine how much of a mortgage payment you can afford.  Don’t forget to include property taxes, maintenance, insurance and mortgage insurance, if applicable, in your payment.

3.  Look around for a real estate agent (See article “10 Things You Need to Know Before You Hire an Agent”

4.  Do not make any sudden changes in your employment or financial condition.  For instance, don’t go out and incur additional debt by buying a new car or furnishings for the house you want to buy, before the purchase is complete.

While the above may not get the house you want, it’s a good start.  Good Luck.