You made the decision to buy a home this year…Congratulations! Homeownership is a dream for most Americans and it’s taken decades of work and dedication to ensure EVERY American has this opportunity.
Learn more by following #NationalFairHousingMonth
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Learn more by following #NationalFairHousingMonth -
so, how do you get started? One of the very first things you want to do is talk to a lender.
It doesn’t make sense to start looking at homes until you understand what you can afford. Some lenders will have an intake form for you to fill out and others will meet with you to review your financials so they can get started on crunching numbers for you.
Make sure you have the following information already collected to make this process easier:
Current pay stubs and/or recent W-2s if they are available
List of additional income sources: alimony, bonuses, investment returns, etc.
Current totals in your accounts (saving/checking, CDs, etc.)
The value(s) of any assets you own (another house or property, a business, etc.)
The sum of any debts you current have (auto loans, credit cards, etc.)
You’ll need to show proof for everything so it doesn’t hurt to collect all the documentation at this stage, but most of the time, the lender will be asking for the estimated numbers and will ask you for proof later.
Once this part is done, your lender will run your credit, do some research, calculate your options. Be sure to ask them about any special programs offered by their institution, state grants & programs, and the breakdown for more than one type of loan option. This will tell you what you can afford.
Need a recommendation on a reliable lender? Talk with our preferred lender, Karen Jackson with MPB Mortgage.
Costs
More than the purchase price
Be sure to remember that you will need funds for closing costs, the deposit, moving expenses, etc. With that in mind, we wanted to take this opportunity to share some money saving tips to start now and continue throughout your home buying process.
Budgeting:
Yes, we know you’ve heard this before and we understand it’s hard to stick to one; but, budgeting really can make a difference. Make it easy for yourself by just starting with a breakdown of your expenses. There are so many apps that will help you pull all your subscriptions. Make sure they are all needed. Then look at your expenses for the past 3 months. See any trends? Anything you can do without? From there it’ll be easier to figure out what you need to cut down on. Notice, we said cut down not cut out. Think about it like dieting. You get cheat days. Give yourself some “cheats” but set a reasonable scale for those cheats, such as set a limit to what you can spend on specific items.
Regularly Put Money Aside:
In most cases, you can set this up automatically with your bank accounts. You don’t have to start out high. Put $10 aside a week and make sure the account it’s going into is not being touched. For some people, taking cash and putting it aside in an envelope system is more comfortable. If that’s you, consider getting a safe to keep that cash secured. Another simple way to put money aside is to collect all your loose change. It adds up overtime and while it’s not generally a lot, it could go towards helping to cover one of the many expenses you have coming up.
Pick Up A Side Hustle:
Be careful with this one. Be sure to research the hustles: Read reviews, look at all the fine print, and understand the time commitment necessary to make money from this. A side hustle can range from freelance work, driving for Uber/Lyft, dog walking, delivery driver for food and/or groceries, become a transcriptionist, resell thrift items, become a user tester, etc.
Being informed and prepared will make this process easier for you. If you every have any questions or concerns about buying a house, our team is here for you!
Use the form below to get in touch with us today!