Keeping a checklist is an easy way to mark off your progress when purchasing a home.
It is no secret buying a home is a complicated, and often long, process. With the correct preparation, however, the process can be made much more manageable. While we’re not guaranteeing that taking these six steps will make the process shorter, they are definitely aimed at reducing your stress when it comes time to purchase your new home.
Figure out how much home you need- what got most people in trouble during the housing bubble was they bought more home than they needed and could afford. Take your family’s current size and future plans into account when figuring out the size of home you need.
Improve your credit score- the higher your score, the lower your down payment and monthly payments. A score of 700 to 720 will get you a good deal, and 750 and higher is the best.
Save for down payment and closing costs- down payments are typically anywhere between 3.5 and 20 percent of the home’s value, and closing costs average between $2,300 and $4,000.
Build up your savings account– this is in addition to saving for closing costs and a down payment. Lenders want to see that you have some fall back money and aren’t living paycheck to paycheck.
Get preapproved- the preapproval process has gotten much more extensive than it used to be. Get your financing in place before you walk through your first home.
Commit to staying in one place- Buying a home is not for someone thinking they’re going to be moving around a lot. Short-term ownership is an expensive idea and should be avoided at all costs.
These are all items you need to have completed before you begin to look at houses. Your friends at Northeast Security Bank can help you with your mortgage needs should you need it, so don’t hesitate to ask. We hope to see you or hear from you soon!
