Buying your first home doesn’t start with looking at houses–it starts much earlier than that. If you are considering purchasing a home soon, you need to begin by getting your finances in order and figuring out a budget. Here are a few tips to help you do just that:
1. Examine your finances. Take the time to sit down and figure out your monthly income and expenses. Track all your regular expenses, as well as any incidentals. Take into consideration any changes you may be expecting soon that will have a direct impact on your finances, such as a raise or a new baby in the family. This will help you get a better picture of how much you can afford and what your budget should be.
2. Factor in the up-front costs of buying a home. Apart from the down payment, which can be anywhere between five to twenty percent of the home’s purchase price, you’ll also have to cover closing costs and other expenses such as getting a home inspection. Be sure to include these costs in your budget, in order to make sure you have enough funds to cover them during closing.
3. Get pre-approved. It’s always a great idea to do this before buying a home because this will let you know how much of a mortgage loan you are qualified to get. You will need to provide your financial information to a lender, who will then pre-approve you and let you know the amount you will be able to borrow. This will make it so much easier for you to work out a budget.
Lastly, it helps to work with an experienced real estate agent who can help you find homes within your budget. A good agent will ensure that you get the best deal and a great home at a price that’s affordable to you.
If you are planning to buy a home, let The Incorvaia Team make the process as easy as possible for you. Call us at 440-879-7130 today!
