How to get the keys to your dream home
- Promanage72
- Dec 17, 2020
- 2 min read
Are you tired of just dreaming about your dream home? Do you want to take the necessary steps to make that dream a reality? Let’s start with making sure you’re in good financial shape. Personal financial readiness will make sure your dream is a financial heavenly dream versus your dream becoming a financial nightmare. The nightmare will be when you get into a mortgage that you can’t afford in the long run, or you lack enough savings to make repairs or any major emergency. I am going to give my BIG 3 successful home purchasing tips.
1. Check and Strengthen Your Credit
This will determine if you can qualify for a loan and how low your interest rate will be. Pay off all your debt before considering your home purchase. DO NOT close credit cards this can negatively affect your credit score. Payoff credit card balances each billing cycle or keep the balances as low as possible. Save for an emergency fund of at least $1000 and set up automatic savings transfers to this account. Ultimately, you want 3-6 months of your household budget in this account. Calculate what you realistically can afford. Know your budget and understand the cost and the expenses that come with owning a home.
2. Start Saving Early
The main costs you want to consider are your emergency funds, down payment especially for conventional mortgage loans, closing costs, and move-in expenses. With great credit and a first-time homebuyer, you may qualify for as little as 3% down. On a $200,000 home that’s $6000, which is hard for an average person to save. So, you want to start early before you even get close to planning to purchase a home. If possible you want to SAVE anywhere from $10,000 - $20,000 for the down payment of your home. Your closing costs can be between 2% - 5% of the loan amount if the seller does not pay closing costs. You may ask the seller to pay a portion or all of closing, but be prepared to handle it if you have to. Your move-in expenses may include some home repairs, upgrades, or new furniture.
3. Decide how much home you can afford
Figure out how much you can spend safely without breaking the bank on your new home. Make sure you are realistic, well informed, and prepared to make the most important and biggest purchase in your life. SET GOALS and conquer them one at a time. Creating that dream home for you and your family is about goal setting and taking the necessary steps in achieving a successful HOMEOWNER statue.
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